HMRC clarifies Claim Notification guidance error – relief may be available for affected R&D Claims

As mentioned in our previous article, HMRC has issued a significant clarification that could benefit companies who believed they were ineligible to claim R&D tax relief due to a missed pre-notification requirement.

This update relates to an error in HMRC’s published guidance that may have led advisers and claimants to wrongly assume their previous R&D claims exempted them from notifying HMRC of their intent to claim.

Here’s what you need to know, and what action affected companies need to take.

HMRC sent a communication to members of the R&D Communication Form (RDCF) clarifying their response to incorrect guidance given about pre-notification in the CIRD between 8th September and 17th October 2024.

During this period, the guidance did not state that previous claims for periods starting before 1st April 2023 and submitted as an amendment after this date do not count when assessing whether the company has submitted a claim during the relevant window to remove the need for claim notification.

The relevant part of the statement is given in full below, but to summarise, if a company:

• Has a claim with a claim notification window that ended between 8th September and 30th November 2024 (claim period ending between 8th March 2024 and 31st May 2024) and:
• Should have notified HMRC of its intention to claim R&D tax relief and:
• Did not submit a claim notification form having assumed that a previous claim (starting before 1st April 2023 and submitted as an amendment after this date) removed the need for pre-notification.

HMRC will allow these claims if these companies or their agents contact HMRC with the information stated below before submission.

CIRD183000 guidance error

Incorrect guidance was published in HMRC’s Corporate Intangible Research & Development Manual at page CIRD183000 on 8 September 2024 and remained until it was removed on 17 October 2024.

The guidance provided an inaccurate interpretation of section 1045A(2), Chapter 2, Part 13 CTA09 – Requirement to make a claim notification. The same interpretation was delivered at the RDCF meeting on 16 September 2024. These actions have meant some companies may have been misinformed as to whether they needed to submit a Claim Notification Form.

From 17 October 2024, the correct guidance has appeared.

To correct this mistake, HMRC will allow claims for an accounting period without a Claim Notification Form where the following apply.

• A company made a valid claim to R&D in an amendment to a return for an accounting period beginning before 1 April 2023, which was submitted to HMRC between 1 April 2023 and 30 November 2024 inclusive;

and

• The accounting period for which a Claim Notification was not delivered, but ought to have been, had a claim notification period ending between 8 September 2024 and 30 November 2024.

Companies affected, or their agents, must contact the R&D Policy team and provide the following information.

1. Evidence of authority to act on behalf of the company.
2. Company name.
3. Company unique taxpayer reference.
4. The date the amended return containing the R&D claim, which the company was relying on to meet the claim notification requirement, was submitted.
5. The accounting period that was not notified as a result of the incorrect guidance.
6. The period of account which the accounting period in (5) formed a part of.

We can be reached by email at randd.policy@hmrc.gov.uk. Emails must state the subject line ‘CIRD183000 notification’. Please read our gov.uk guidance entitled “Corresponding with HMRC by email” before communicating with us. If you choose to communicate by email, we require confirmation in writing by post or email that the company whose tax affairs are being discussed understands and accepts the risks. In addition, you will need to send us the names and email addresses of all people you would like us to use email with.

HMRC will review the information and, if we agree the conditions have been met, will invite companies to submit a claim for the relevant period. Companies who have already provided this information to HMRC will receive an email shortly. All R&D claims received as a result will be subject to HMRC’s normal risking processes.

CIRD183000 will be updated to reflect these corrective measures.

Errors in Claim Notification Forms

To complete the Claim Notification Form, companies must provide their Unique Taxpayer Reference and the start and end date of the accounting period to which the claim relates. These details must match the information shown in the Company Tax Return otherwise HMRC will not be able to locate the form and the claim will be removed.

If a company disagrees with a correction to a return, it can make a written representation. Currently, HMRC reject representations where the Unique Taxpayer Reference or the start/end date of the accounting period were incorrect. We are reviewing this procedure and will update members and, if necessary, issue further guidance once those discussions have concluded.

This clarification from HMRC is a welcome development for companies that may have been unfairly excluded from making an R&D claim due to incorrect guidance.

If you are an accountant or adviser, and believe your client is affected, it’s essential to act promptly by contacting HMRC with the required information before submitting the claim. As stated above, while this correction offers a second chance, all claims will still be subject to HMRC’s standard risk assessment, so accuracy and compliance remain key.

If any WhisperClaims customers would like to discuss this matter further, please just get in touch via our usual support channels.

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