Navigating HMRC’s New R&D Protocols – Staying Compliant in an Evolving Landscape
In response to a growing trend of deceptive Research and Development (R&D) claims, HM Revenue and Customs (HMRC) has introduced two pivotal initiatives aimed at fortifying the integrity of R&D tax relief submissions.
The first of these initiatives, the Claim Notification Form, marks a significant alteration in the R&D claims process. Effective for accounting periods commencing on or after 1st April 2023, this digital pre-notification form is now obligatory for entities seeking R&D tax reliefs. It applies specifically to those making their initial claim or whose prior claim surpasses a three-year interval before the closing date of the claim notification period.
The window for submitting the claim notification spans from the commencement of the accounting period to six months post the period’s conclusion. Completing the form entails providing essential details such as the company’s Unique Taxpayer Reference (UTR), pertinent contacts within the company responsible for the R&D claim, agent details involved in the claim, accounting period specifics, period of account dates, and an overview of the planned high-level activities.
The second initiative, the Additional Information Form (AIF), is set to come into effect from 8th August 2023. All R&D claims must be accompanied by this supplementary form, to be submitted online or via email ahead of filing the Company Tax Return (CT600). Non-submission of the AIF alongside the CT600, despite an R&D relief claim, will prompt HMRC to automatically expunge the R&D claim from the return.
The AIF demands a comprehensive array of information, necessitating details about each R&D project, the projected advancements in science or technology against a baseline, and specifications regarding whether the claim pertains to R&D relief, expenditure credits, or both. Detailed guidelines on the information requisites are available on the GOV.UK platform.
It is imperative to note that any tardiness or inaccuracies in submitting these forms might lead to HMRC rejecting the R&D relief claim. Should your business have plans for R&D activities, navigating these evolving compliance requirements could be daunting.
We understand the intricacies of these new protocols and stand ready to assist you in ensuring compliance. Our team can guide you through the process, ensuring that your R&D claims adhere to the updated HMRC standards.
Stay ahead of the curve and secure your R&D tax relief by partnering with us.
Contact us today to embark on a seamless journey towards compliance and successful R&D claims.