From 1st August 2023, an additional claim form must be submitted to HMRC prior to or at the same time as the submission of the company’s tax computation (including R&D). Without this, the R&D claim will be removed from the Corporation Tax return.
It is worth noting that the claim form can be completed by an agent however it will require the details of the main senior internal R&D contact in the company who is responsible for the R&D claim.
What information is required?
What project information is required?
The form requires details of the projects you’re claiming for in the accounting period in question along with the details of these projects. The requirement set by HMRC will be to include at least 50% of the total R&D projects conducted within the period (from a minimum of 3 projects (100% of the projects will need to be included when supplying 3 projects) up to a maximum of 10). The following details will be required for each project:
What qualifying expenditure information is required?
Please note, depending on which conditions you meet, you can claim under either the SME or the RDEC scheme.
Qualifying R&D cost categories in which HMRC will require a breakdown to support your claim are listed below:
These changes will affect the way in which a claim is prepared. Therefore, it is of benefit to all companies currently undertaking R&D activities to speak with us now to understand the impact of making a future claim to ensure you aren’t missing any important deadlines.
As a result of the recent reforms within HMRC, several areas of the R&D Tax Relief schemes changed with effect from the 1st April 2023. One such change is the requirement to notify HMRC in advance that you intend to make a claim.
Who needs to pre-notify?
You must pre-notify HMRC of your intention to claim in the following instances:
I.e., if a company submitted an R&D claim in 2021 and plans to do so again in 2024, it will not need to make a pre-notification (as the company made a claim within the previous three calendar years). However, if a company last claimed in 2020 and intends to make a claim in 2024, pre-notification will have to be submitted.
When do you need to notify HMRC of your intention to claim?
The earliest point at which a company can notify HMRC is the first day of the accounting period containing qualifying activity. The latest point at which you must notify is 6 months after the end of the accounting period containing qualifying activity.
For clarity, if the accounting period containing qualifying activity is 1st October 2023 to 30th September 2024, the notification must be submitted between 1st October 2023 and 31st March 2025.
What information is required?
The claim notification form will require the following:
From the 1st August 2023 you must submit an additional information form to support all your claims for R&D tax relief or expenditure credit, either before or at the same time as the electronic submission of your CT600.
These changes will affect the way in which a claim is prepared. Therefore, it is of benefit to all companies currently undertaking R&D activities to speak with us to understand the impact of making a future claim to ensure you aren’t missing any important deadlines....
In January 2023, HMRC launched a consultation with the aim to simplify the UK’s R&D tax relief system. This in turn should drive innovation and help grow the economy. Further details of the outcome of the consultation will be released in due course.
Now more than ever it is important that you seek the correct advice when looking into your R&D tax claims. Contact our specialist team for a no obligation chat.
You can read the full HMRC article here: R&D Tax Relief Reform...