R & D tax relief enable companies to claim credit for expenditure on R & D costs in the form of a tax credit or enhanced deduction for expenses on R & D and have proved very popular over the last few years.

As a result, HM Revenue and Customs (HMRC) have brought in new admin requirements for companies that wish to make R & D claims and these could catch some out.

For all claims submitted to HMRC after 1 August 2023, companies will be required to provide HMRC with an “additional information form” containing detailed information to support the claim.

The second change is more time sensitive.  For claims relating to accounting periods beginning on or after 1 April 2023, advance notification will need to be provided to HMRC.  That advance notification must be submitted to HMRC within 6 months of the end of the period of claim.   This will apply to companies who have never made an R & D claim and those who have not made a claim within the last 3 calendar years.

There is an exception to the above in that if the company can submit the corporation tax return incorporating the claim within 6 months of the claim end period there will be no need to submit advance notification.

Hopefully these requirements won’t put claimants off as R & D tax reliefs are important to innovative UK companies.