Navigating the complexities of Research and Development (R&D) tax relief can be challenging for many businesses. With recent changes implemented by HMRC, it’s crucial to stay informed and prepared.
In this article, local accountant in St Albans, Chris Wallace, outlines new requirements that you need to be aware of.
Speak to your accountant about your R&D claim
We would encourage our clients to consult with your Accountant at Visionary to receive tailored advice and guidance that aligns with your unique circumstances. We are experienced in delivering claims in partnership with our St Albans-based R&D tax relief claim experts.
Not a Visionary client? Not a problem, if you are worried about an R&D claim, continue reading to find out what’s changing and then get in touch.
What are the new R&D rules?
As you may be aware, HMRC have introduced new rules around pre-notifying a companies intention to make an R&D claim for a period. Essentially, if you’re planning to claim Research and Development (R&D) tax relief or expenditure credit for accounting periods beginning on or after 1 April 2023, you must submit a claim notification form if:
- You’re claiming for the first time.
- Your last claim was made more than 3 years before the last date of the claim notification period.
There is, however, a caveat that one of the claims made in the last 3 years must have been submitted as part of the original tax computation, rather than an amendment. In terms of timelines, the earliest date that a Claim Notification form can be submitted is on the first day of the accounting period to which the claim relates. The latest date for submitting the Claim Notification form is 6 months after the end of the period of account that includes the relevant accounting period.
Companies who need to supply a Claim Notification are:
- First time R&D claimants.
- R&D claimants who have not made an R&D claim in any of the previous 3 calendar years.
Example 1: A Company submits an R&D claim on 1 April 2022. They next look to submit an R&D claim on 1 January 2025. As they have submitted a claim in one of the last 3 calendar years, they do not need to submit a Claim Notification.
Note that if they made their R&D claim before the deadline for submitting a Claim Notification (see time limits below), they do not have to also submit a Claim Notification form.
Example 2: A Company has a period of account that ends on 5 September 2023. The deadline for submitting the Claim Notification is 5 March 2024. If they submit their R&D claim on 4 February 2024 they do not also have to submit a Claim Notification.
The Claim Notification is made for a period of account and will cover any accounting periods that fall within that period of account. This means that if a Company’s accounting period changes, or they decide not to claim until a later account period, they may need to submit a new Claim Notification form.
Time limits
The earliest date that a Claim Notification form can be submitted is on the first day of the accounting period to which the claim relates.
The latest date for submitting the Claim Notification form is 6 months after the end of the period of account that includes the relevant accounting period.
What information is required to submit an R&D Tax Claim Notification?
- The Unique Tax Reference (UTR) number of the company - this must be correct and correlate with that on your CT600.
- Contact details of main internal R&D contact at the company - this is the person from the business responsible for the claim.
- Contact details of any agent involved in the R&D claim.
- Agent reference number (if you have one).
- Period of account start and end dates which must correlate with your tax computations.
- Accounting period start and end dates of the accounting period claiming R&D for only - again, this must be correct and align with that on the CT600.
Speak to your Local R&D Tax Claim Experts in St Albans
To ensure you maximise your R&D tax claims and, more importantly, receive the correct advice, it’s vital to consult with local experts who specialise in R&D tax relief claims. Our local accountants in St Albans are experienced R&D tax claim professionals and understand the intricacies of the process. We will provide personalised guidance tailored to your business needs.
Engaging with a local R&D tax claim expert can make a significant difference in navigating the complexities of the claims process. The expertise that our accountants provide ensures that you can claim all eligible expenses, receive the appropriate relief, and avoid potential pitfalls that could arise from misunderstandings of the rules.
From our experience speaking with local businesses, we know that many companies claim to be R&D experts. Some of these businesses offer no win, no fee services that may not be the most suitable strategy for small businesses. We provide initial advice to help you ask the right questions and determine whether a claim is possible before we begin any formal process. If you need advice, call our local R&D claim experts in St Albans on 01727 730550 or email enquiries@visionaryaccountants.co.uk.