Important changes to Reseach & Development claims

HMRC changes to Research & Development (R&D) tax relief - important information for anyone planning to claim.

R&D relief is a valuable allowance designed to provide financial support for businesses that are investing in innovation and developing new processes, products, or services.

From April 2023 however, HMRC has changed the way claims must be made. This means that most companies are now required to pre-notify their intention to make a claim no more than six months after the financial period to which the claim relates.

Claims made without pre-notification within the time limit will no longer be valid.

It is thought that the pre-notification will need to incorporate a high-level summary of the planned R&D activities but no calculations. These will be required when the actual claim is submitted - in a new HMRC form - along with further details.

Does this affect my company?

Any company wishing to make a claim for R&D relief or expenditure credit (RDEC) for accounting periods BEGINNING on/after 1.4.2023, should assume it is affected by the changes.

Understanding exactly how the R&D tax relief regimes work after changes came into force in April 2023 may be of critical importance to your financial projections, so we would recommend you get in touch as soon as possible to discuss your claim and how the changes might affect your business.

The team is continuing to monitor the situation and more detail is expected shortly.

To get in touch you can call us on 01225 325580 or email us at hello@richardsonswift.co.uk or you can fill out the form below.