To be successful in a game of chess, it requires strategy: thinking ahead and planning your next move.

Where R&D claims are concerned, it is more important than ever for company directors and their accountants to be looking ahead and planning their moves since the introduction of the advance claim notification – a requirement that many people remain unaware of.

Companies wishing to submit a claim for R&D for an accounting period beginning on or after 1 April 2023 may need to submit an advance claim notification to HMRC in order for their claim to be eligible. Not all companies are required to do this – it applies to companies that:

• are making a claim for R&D tax relief for the first time
• previously claimed more than 3 years prior to the end of the claim notification date.

The claim notification is required to be submitted no later than 6 months following the end of the period of account. For example, if the accounting period ended on 31 December 2024, the company has until 30 June 2025 to notify HMRC of their intention to make a claim. If a claim notification is required but not submitted, the company will not be able to claim R&D tax relief for the entirety of that period – this could be a very costly mistake to make.

Get in touch if you have any questions!