In an attempt to tackle the number of fraudulent R&D claims several changes have been introduced.  One such change is the requirement to notify HMRC in advance of an R&D claim being made. If a claim is made without notification HMRC will have the power to amend the tax return to remove the claim.  This amendment cannot be rejected, and a new claim, relating to the same expenditure as the original claim, cannot be made.

Who Must Notify HMRC About An R&D Claim

Any company wishing to submit an R&D claim for an accounting period beginning on, or after 1 April 2023 must notify HMRC in advance of submitting their claim if:

• This is the company’s first claim.
• A claim was submitted for the previous year but was submitted after the last day of the notification period (6 months after the end of the period of account).
• The last claim was more than 3 years before the last date of the claim notification period.

This applies to claims made under either the SME or RDEC schemes.

When To Notify HMRC About An R&D Claim

The latest that a notification can be made is 6 months after the end of the period of account the claim relates to.  For a year that runs from 1 January 2024 to 31 December 2024 the latest a notification can be made is 30 June 2025.  It is possible to notify HMRC from 1 January 2024.

For long periods, those over 12 months, only one notification must be made. For a long period running from 1 January 2024 to 31 March 2025 there are 2 accounting periods, 1 January 2024 to 31 December 2024 and 1 January 2025 to 31 March 2025.  However only one notification needs to be made, no later than 30 September 2025.

What Information is Required

The notification must include the following:

• The company’s Unique Tax Reference (UTR) number
• The individual within the company who is responsible for the R&D claim.
• Contact details for any agent involved with the R&D claim.
• The accounting period which the claim will be made for
• A high-level summary of the planned activities for which the claim will be made for.

How to Notify HMRC About An R&D Claim

The notification can be made by the company or their agent.  The notification must be submitted through the company’s or agent’s HMRC account. Once submitted you will be provided with a reference number which should be retained.

The CT600 has been updated to include box 656, which must be completed to indicate a claim notification form has been submitted.

If you are unsure if you need to submit a claim notification form please contact us on 028 9040 6295 or e-mail rb@pgradvisory.com.