In 2021, the government intensified its efforts to reduce error and fraud in R&D tax relief schemes, recently estimated to be costing the taxpayer £1.34 billion. To tackle this issue, HMRC launched a review which aimed to increase compliance and target fraudulent R&D advisers who submit claims without company consent or full knowledge of what was included in the submission.
As part of these reforms, new regulations were introduced, including the requirement to submit an Additional Information Form (AIF) with every claim, as well as the introduction of the claim notification form (sometimes called ‘pre-notification’).
What is the claim notification form?
The claim notification form is an online submission that informs HMRC of a company’s intention to claim R&D tax relief or expenditure credit. It is required for first-time claimants or those who haven’t made a claim in the last three years, and businesses must submit the form with basic company and project details.
The form can be submitted by either a company representative or an agent within 6 months of the end of the accounting period. It is essential that the claim notification form is submitted on time to avoid delays in processing claims, especially for those who previously filed a paper company tax return.
What information is needed?
You will need to provide:
- Unique Taxpayer Reference (UTR)
- Contact details of the primary internal R&D contact responsible for the claim
- Agent contact details, if applicable
- Accounting period start and end dates for the R&D claim
- Period of account start and end dates
- A high-level summary of planned R&D activities
Do you need to submit a claim notification form?
To determine if you need to submit this claim notification, consider the following:
- Which accounting period are you claiming for?
The claim notification form is required for accounting periods starting on or after 1 April 2023. - Has your company claimed R&D relief before?
First time claimants with accounting periods beginning after 1 April 2023 must submit the claim notification. - Was your last R&D claim within the past three years?
- If your last R&D claim was more than three years ago, you must submit a claim notification form within 6 months of the accounting period.
- If your last R&D claim was made within the three-year period (looking back) ending six months after the end of your accounting period and filed with your original tax return (i.e. not by amendment) you don’t need to submit a claim notification. If the above doesn’t apply, you may need to submit a claim notification.
Claim notification deadlines
The claim notification window is six months after the end of the period of account you’re claiming for. For most companies with a 12-month accounting period, this window spans 18 months from the start of the accounting period.
Get in touch
If you have any questions regarding the pre-notification rules or how they could affect your business, PM+M’s R&D tax relief experts are ready to help. Get in touch by emailing enquiries@pmm.co.uk to arrange an initial chat.
