What is R&D claim notification?

If you are claiming R&D tax relief for accounting periods starting on or after 1 April 2023, you may need to submit a claim notification. This is a new requirement to notify HMRC in advance that you will be making a claim for R&D tax relief.  

To complete the claim notification, you will need to provide key details of the R&D claim, including company details, agent details, the accounting period start and end date, and a summary of the high-level planned R&D activities. Therefore, you should submit the form once you have a good understanding of what development work you are planning to undertake.

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‍Do I need to submit the claim notification?

You must submit a claim notification if:  

• You have never claimed R&D tax relief before.

• Your last claim was made more than 3 years before the last date of the claim notification period.

To determine if you qualify for the three-year exception, calculate the last day of the claim notification period and count back three years. For instance, if your accounting period ends on 31 December 2024, the claim notification deadline would be 30 June 2025. Any R&D claim submitted between 1 July 2022-30 June 2025 fall within this exemption window.  

Be aware that claims submitted via a Corporation Tax return amendment within the last six months of the amendment window might not qualify for this exemption. You should focus on the date the claim was actually made, not the accounting period it covers. For example, if your accounting period ends on 31 December 2024 and you submit an amended return for the year ending 31 December 2023 (between 1 July and 31 December 2025), this claim would fall outside of the three-year window. Consequently, you would need to submit a claim notification for the YE2024 R&D claim.

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‍When do I need to submit the claim notification?  

You can submit the claim notification at any time from the start of your accounting period up to six months after the end. For example, if your accounting period runs between 1 January 2024 and 31 December 2024, you can submit the claim notification between 1 January 2024 up until 30 June 2025.  

For accounting periods exceeding 12 months, which are usually split into two accounting periods for tax purposes, only one claim notification is required for the first period. The deadline remains six months after the end of the second accounting period. For example, if your long accounting period runs between 1 January 2024 and 31 March 2025, you can submit the claim notification between 1 January 2024 up until 30 September 2025.

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‍What happens once I’ve submitted a claim notification?  

Submit the claim notification online using either a Government Gateway user ID or an email address. After submitting, HMRC will send a confirmation email with a reference number. Be sure to keep this reference number for your records. When you file your R&D tax claim, remember to mark an ‘X’ in box 656 of your Company Tax Return to inform HMRC that a claim notification was submitted.

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‍Can I still claim R&D tax relief if I haven’t submitted a claim notification?

Failing to submit the notification form when required will prevent you from claiming R&D tax relief for that period. Therefore, understanding and adhering to the claim notification requirement is essential. As the deadline is six months after the end of your accounting period, you could surpass this deadline before you have even started preparing your R&D claim. To avoid missing out on valuable R&D tax credits, it’s essential to move from periodic reviews to a real-time claim review process. This proactive approach will help you meet your deadlines and maximise your R&D tax relief benefits. When in doubt, submit a claim notification. It's better to be safe than risk having your entire claim rejected.

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‍How can we help?

At Folio Partners, we specialise in helping innovative companies maximise their R&D tax relief potential. We will guide you through any new requirements of the R&D scheme, ensuring that you submit a fully compliant R&D claim. If you choose to work with us, we will work closely with you to submit a claim notification, document qualifying R&D activities, analyse the financial costings, and prepare a robust R&D claim. Ultimately, our aim is to make your R&D claim submission process as smooth as possible.  

Stay ahead of changes to the R&D scheme—contact us today to discover how we can support your R&D claim.