R&D claims – a changing landscape

Date posted: 8th Aug 2023

The research and development (R&D) tax relief regime changed in April 2023 with the changes to the rates of relief and tax credits that can be claimed.

In addition, the scope of allowable R&D costs changed to include cloud computing costs as well as extending the definition of R&D to include pure mathematics.

Then there is the ongoing HMRC enquiries into R&D claims which is causing much frustration in the accountancy profession.

However, further changes come into effect from August 2023.

These are:

A requirement to provide additional information before an R&D claim is made; and

A requirement for certain companies to make a claim notification within six months after the end of the accounting period for which they want to claim R&D relief.

When a limited company intends to make a claim for R&D tax relief, from 8 August 2023 onwards, it will need to provide detailed information to HMRC in advance including details of costs claimed and breaking down the projects and explaining the R&D undertaken. This applies for all claims made after that date, even if these are claims made for earlier years. Where the notification is not made, the claim to R&D relief will be invalid.

For accounting periods beginning on or after 1 April 2023, there is also a new R&D claim notification form which must be submitted within the ‘claim notification period’, which ends six months after the end of the accounting period for which the company wants to claim R&D relief.

As ever, if you have any queries, please give us a call.


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