Advanced Notification Rule
Eligible to claim R&D tax credits but never claimed before (or at least not in the last three years), the new rules will affect you.
In a bid to prevent last minute speculative R&D claims being made, HMRC have introduced the Advance Notification requirement for accounting periods beginning on or After 1 April 2023. The new rules are specifically aimed at new claimants, or where the company has not made a claim in the three years preceding the end of the claim notification period.
Companies are required to inform HMRC, in advance, of their intention to make an R&D claim. They will need to do this, using HMRC’s digital service, within 6 months of the end of the accounting period to which the claim relates – referred to as the claim notification period.
For example, a first-time claimant company with a 31 March 2024 year end will need to notify HMRC by 30 September 2024. Failure to either submit the Advance Notification Form or submit your R&D Claim (using HMRC’s Additional Information Form – AIF) within the claim notification period i.e. by 30 September 2024, will render the claim invalid. Any tax adjustment made in the CT600 in relation to the invalid R&D claim will be subsequently removed by HMRC.
HMRC must be notified on a prescribed notification form and contain a summary of the high-level planned activities. As professional advisors specialising in the sector, we can act on a client’s behalf and submit the notification.
Additional Information Form
Never before has it been a legal requirement to justify your qualifying R&D activities, however from 8 August 2023, regardless of the company’s year-end, you must submit an online Additional Information Form (AIF) to substantiate the R&D expenditure. Failure to complete and submit the AIF will render the R&D claim invalid. In addition, the AIF must be submitted to HMRC before the submission of the CT600.
We have specialised in the sector for decades providing full disclosures to underpin clients’ R&D claims. We work in accordance with best practice and YesTax prides itself on being best-in-class in preparing R&D claims. Working with accountants throughout the UK we can ensure claims are prepared in a timely manner and submitted seamlessly alongside your CT returns.
If you’d like to discuss your entitlement and scope to claim, or wish to further understand the new rules, we’d be very pleased to help.
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