Navigating The New Pre-Notification Requirement for R&D Tax Relief Claims

Navigating The New Pre-Notification Requirement for R&D Tax Relief Claims

The landscape of R&D tax relief in the UK is evolving, with recent changes introduced by HMRC set to impact businesses planning to claim this incentive. Understanding these changes is crucial for companies looking to maximise their potential benefits from R&D tax relief. Here’s what you need to know about the new pre-notification requirement and how it affects your claim process.


The Pre-Notification Requirement Explained 

Starting from the 1st of April, 2023, HMRC introduced a pre-notification requirement for companies intending to claim R&D tax relief. This move is designed to streamline the claims process and ensure that HMRC can manage and assess claims more efficiently. The requirement mandates that all businesses planning to make an R&D tax relief claim must notify HMRC up to six months after the end of their accounting period.


Who Is Affected? 

The first group of companies to be impacted by this change will be those with a March 2024 year-end, covering the accounting period from the 1st of April, 2023, to the 31st of March, 2024. These companies must notify HMRC of their intention to claim R&D tax relief no later than September 2024.


Who Needs to Pre-Notify? 

All first-time claimants whose accounting period starts on or after the 1st of April, 2023, are required to pre-notify HMRC no later than six months after their year has ended. It’s a critical step to ensure eligibility for the claim within that fiscal year.


Exemptions to the Rule 

It’s important to note that companies which have submitted an R&D tax relief claim within the last three years may be exempt from this pre-notification requirement. This exemption is designed to streamline the process for businesses already familiar with the claims process and to focus attention on supporting new claimants. This exemption does not apply if the claim was submitted after 6 months of the period’s year end.


The Importance of Early Action 

With the introduction of the pre-notification requirement, we anticipate potential delays in the processing of claims as the September deadline approaches. To avoid these delays and ensure a smooth claim process, we advise companies to begin compiling and submitting their claims as early as possible. Acting now can mitigate the risk of delays and ensure your business maximises its R&D tax relief benefits.


How We Can Help 

As a leading consultancy service in R&D tax relief claims, we’re here to guide you through the new requirements and ensure your claim is successful. Our team of experts is equipped to handle the pre-notification process on your behalf, providing peace of mind and allowing you to focus on your core business activities.


If you have any questions or need assistance with your R&D tax relief claim, please don’t hesitate to reach out. Let’s navigate these changes together, ensuring your business continues to innovate and grow with the support of R&D tax incentives. 

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