From 1^st 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?

• Company Details (UTR, employer PAYE reference, VAT number & SIC code)
• Contact Details (Senior R&D contact & agent details)
• Accounting period start and end date
• Technical project details
• Details of the qualifying expenditure
• Qualifying indirect activity

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 is the main field of science or technology?
• What was the baseline level of science or technology that you planned to advance?
• What advance in that scientific or technical knowledge did you aim to achieve?
• What scientific or technological uncertainties did you face?
• How did your project seek to overcome these uncertainties?

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:

• Staff (including gross salary, employers NIC and employers pension contributions)
• consumable items, for example materials or utilities used up during the R&D project
• subcontractor costs
• software
• externally provided workers
• cloud computing costs, including storage, for accounting periods beginning on or after 1 April 2023
• data licence costs, for accounting periods beginning on or after 1 April 2023
• payments to participants of a clinical trial

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 1^st 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:

• you’re claiming for the first time.
• you’ve claimed for the previous tax year, but you did not submit that claim until after the last date of the claim notification period (the claim notification period ends 6 months after the end of the period of account).
• your last claim was made more than 3 years before the last date of the claim notification period.

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 1^st October 2023 to 30^th September 2024, the notification must be submitted between 1^st October 2023 and 31^st March 2025.

What information is required?

The claim notification form will require the following:

• The company’s Unique Taxpayer Reference (UTR).
• The main senior internal R&D contact in the company who is responsible for the R&D claim.
• The contact details of any agent involved in the R&D claim.
• The accounting period start and end date for which you’re claiming the tax relief or expenditure credit.
• The period of account, start and end date.
• A summary of the high-level planned activities, and show how the projects meet the standard definition of R&D.

From the 1^st 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