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Advance Notification to HMRC for Research and Development Claims

The twice-yearly meeting of the Research and Development Communication Forum was held this week. The group brings HMRC officials, R&D agents and accountants together to discuss the Research and Development Tax Relief, commonly referred to as R&D tax credits.

It was communicated again that the increased processing times, up to 40 days, are expected to continue for the time being but the intention is to return to the original timescale of 28 days as soon as possible.

One key takeaway from the meeting was the issue of pre-notification or advance warning and it was confirmed that companies, who have not claimed in the previous 3 years, will need to advise HMRC that they are planning on making a claim before submitting their CT600. This advance notification can be made digitally and must be made within 6 months after the end of the relevant accounting period.

So this new measure is particularly relevant for first time claimants. Moreover, it is important to note that even if a company makes this advance notification and then does not subsequently make a claim, they would not be penalised, but a new notification would need to be made for the next accounting period and, so, if you are a first time claimant, or have not claimed for the past three years, it is advised that the subject of advance notification is discussed with your accountant so that it is navigated properly going forward.

As you will know already, there is a two year window for claiming R&D tax credits so it remains to be seen how these two ideas co-exist. Also, with lots of reshuffling in Government expected, Buzz will be keeping a close watch on any further developments as the political landscape alters.

If your accounting period is coming to an end and you are anticipating making a claim why not get in touch to explore a loan? With the above-mentioned delays expected to continue it might be some time before you have the cash back in your bank account.

Buzz can provide advance funding now secured against your R&D claim and can arrange for the cash to be released in just a few days. So, whether you are expecting to finalise your claim soon or are perhaps only part way through the relevant accounting period and anticipate making a claim soon, we can discuss your options

Just let us know if you wish to discuss this article further or your claim itself.