Don’t Miss Out on Your R&D Tax Credits by NOT Notifying! ??

If your business is claiming R&D Expenditure Credit (RDEC) or the SME R&D tax credit under the UK tax system, it’s crucial to be aware of the latest rules. There are strict deadlines in place for notifying HMRC that you plan to make an R&D claim in your tax return. Failing to notify HMRC on time could mean losing out on valuable R&D incentives.

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Some companies are exempt from needing to do a notification but the devil is in the detail.

Those companies that are most likely to miss notification are new claimants that have made one previous R&D claim via an amended tax return that was submitted on 1st April 2023 or later.

Let’s break this down.

Key Points You Need to Know:

1.???? Claim Notification Period: If your company does not have an exemption you need to notify HMRC within 6 months of your period of account end date (i.e. six months from the end of the period of account in which you are claiming R&D costs). No notification? No claim. Simple as that.

2.???? Exemption Criteria: You might still be able to submit your claim up to two years after the end of your relevant R&D claim period of account, if you meet exemption criteria.

A.??? You are exempt from doing a notification if in the 3 years before the notification deadline (i.e. the 3 years ending six months after the period of account end date):

a.???? an original CT600 R&D tax return was filed; or

b.???? an amended CT600 R&D tax return was filed before 01/04/2023; or

c.???? an original or amended CT600 tax return was filed for a period starting on or after 01/04/2023.

B.??? But if in the three year period only an amended CT600 tax return was filed after 1/04/2023 for an accounting period that started before this date - notification is required. This is where companies that have only made one recent R&D claim are missing the notification deadline.

C.??? Periods of account ending before 1st April 2023 are exempt from notification but as always, you must file a tax return with an R&D claim within two years of the end of the relevant accounting period.

Why This Matters: Miss the notification window, and you risk missing out on potentially thousands of pounds in tax relief or payable tax credits. Even if your company has a strong R&D history, don’t assume you’re covered—check first.

Examples: Don’t let technicalities trip you up!

Here are some examples of where notification IS and IS NOT required.

1)??? R&D claim period of account ends on 31st March 2023 or earlier – notification IS NOT required (see C. above).

2)??? R&D claim period of account ends on 30th November 2024 and the company has done only one previous R&D claim for the period of account ending 30th November 2022 and:

a.???? the claim was filed by an AMENDED tax return on 1st April 2023 or later – notification IS required (see B. above).

b.???? the claim was filed by an amended or original tax return on 31st March 2023 or earlier – notification IS NOT required (see A.a. and b. above).

c.???? the claim was filed in the ORIGINAL tax return at any time before 30th November 2024 (the latest date this claim can be filed) – notification IS NOT required (see A.a. above).

3)??? R&D claim period of account ends 30th June 2024 and the company has done only one previous R&D claim for a period ending 30th June 2019 and it was:

a)???? filed on 31st December 2021 or earlier – notification IS required (see A. – this previous filing is outside the 3 years required for exemption from notification).

b)??? filed on 1st January 2021 or later, up to 30th June 2021 (the latest date this R&D claim can be filed) – notification IS NOT required (see A.a. and b. – this previous filing is inside the 3 years required for exemption).

The Big Takeaway: Don’t wait until it’s too late. If in doubt Notify HMRC within the required timeframe to secure your claim. There will be no comeback if later you decide not to claim the R&D tax incentives. ?

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