A crucial new claim notification requirement from HMRC could invalidate your R&D claim if missed.
It’s no secret that the R&D tax credit regime is still one of the most generous government incentives available to innovative UK businesses undertaking eligible R&D. But since April 2023, a critical new rule has quietly entered the picture – and it’s catching many companies off guard.
If you’re planning to submit a new R&D claim, or haven’t claimed in over three years, you must notify HMRC in advance of your intention to claim. Miss the deadline, and your claim will be invalid – no matter how eligible your work is.
What is R&D claim pre-notification?
In short, HMRC now require companies to pre notify of their intention to make a claim for R&D tax relief. It’s a requirement for:
- First-time claimants
- Companies claiming after a break of three or more years
- Companies who have submitted claims on amended tax returns for an accounting period before 1 April 2024 and where the amendment was made on or after 1 April 2023
- Or where HMRC has rejected your previous claim
The claim notification window starts on the first day of your accounting period and ends six months after the end of your accounting period. Get it wrong and your R&D claim won’t be valid.
There is an exemption for companies who have previously claimed R&D relief. If you have claimed R&D relief on an original filed return within 3 years of the end of your last claim notification period you do not need to file a claim notification.
Why it matters
It’s easy to miss the claim notification requirement if you have never claimed before but existing claimants are also being caught out. Groups that have acquired new subsidiaries, or where group entities are claiming for the first time may assume they’re covered if other group companies have been claiming each year. But claim notifications are handled per company, and the pre-notification applied separately to each one.
Even more confusing? If you’ve submitted a claim for an accounting period before 1 April 2023 by amending a return post-April 2023, HMRC disregard it when assessing if a claim notification is required. Only claims submitted on original returns within the 3-year window count towards the exemption.
The result? Your entire claim will be invalid.
What does the form involve?
- Basic company information
- A named internal approver
- Your adviser’s details
- A high-level summary of the R&D activities you plan to undertake
- The form is relatively simple to complete so if in doubt it is better to submit a claim notification as there is no penalty for not going ahead with a claim.
How Wilson Partners can help
At Wilson Partners, our specialist R&D team supports clients across all sectors – from AI to engineering – to ensure claims are:
- Compliant
- Robust
- Fully optimised
We’ll work with you to establish your project’s eligibility, prepare cost data, and handle every aspect of the submission process – including the all-important claim notification.
This is a technical area of tax that’s continuing to evolve fast. If you’re unsure whether you need to notify HMRC, we can help. Talk to our R&D tax specialists today.
