There was positive news on Monday 28 April – HMRC have clarified that businesses who previously missed out on R&D claims due to HMRC’s incorrect guidance are now able to make their claims!
HMRC have acknowledged that they did provide incorrect guidance in the CIRD manuals between 8 September and 17 October 2024 around pre-notification for R&D claims. Following this incorrect guidance, some companies understood that they were not required to submit Claim Notification Forms and later had their R&D claims unfairly rejected when no pre-notification was made.
HMRC have now subsequently clarified that they will allow claims for accounting periods without Claim Notification Forms where the following conditions apply:
- A company made a valid R&D claim in an amendment to a return for an accounting period beginning before 1 April 2023;
- This amended return was submitted to HMRC between 1 April 2023 and 30 November 2024 inclusive; and
- The accounting period for which a Claim Notification was not delivered, but should have been, had a claim notification period ending between 8 September 2024 and 30 November 2024.
A reminder – the claim notification period ends 6 months after the end of the a company’s ‘period of account’.
If you believe you are affected, either you or your tax agent, must contact the HMRC R&D Policy team and provide the following information:
- Evidence of authority to act on behalf of the company.
- Company name.
- Company Unique Taxpayer Reference.
- The date the amended return containing the R&D claim was submitted (the one relied upon to meet the claim notification requirement).
- The accounting period that was not notified as a result of the incorrect guidance.
- The period of account that the accounting period in (5) formed a part of.
You can contact HMRC at randd.policy@hmrc.gov.uk with an email headed “CIRD183000 notification.” Please ensure you are happy to correspond via email before doing so.
Other Clarifications
HMRC also clarified that when completing the Claim Notification Form, the UTR and accounting period start and end dates must match the information shown in the company tax return otherwise HMRC will not be able to locate the form and the claim will be removed.
If you disagree with a correction to a return or a removal of a R&D claim, you are able to make a written representation. However, HMRC have confirmed that they will reject representations where the UTR or the start/end date of the accounting period were incorrect. They are reviewing this approach, but it remains the approach for now.
Pre-Notification for R&D Incentives
Pre-notification for R&D claims continues to be a complex area. Companies often make errors and miss the opportunity to make claims for the innovative work they have undertaken. With only 6 months after your period of account to pre-notify, its vitally important you consider the deadline in line with your current accounting periods.
The team at Catalyst are always happy to have a conversation with you to answer any questions you might have.