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04/03/2024HMRC R&D Enquiries on the Rise: What You Need to Know
04/07/2024HMRC now requires you to notify your intention to make an R&D tax relief claim within six months of the end of all tax return periods starting on or after 1 April 2023 (unless exempt). As this is new, we have created a Q&A to help with your understanding of the claim notification form (CNF) and the process.
What is the CNF?
The CNF is an online form that you must submit within six months of your accounting period‐end (for periods beginning on or after 1 April 2023) to notify HMRC in advance that you intend to make an R&D claim. It needs to be completed for each accounting period and applies only to the accounting period it is submitted for. If it’s submitted within the deadline, it then allows you to submit your R&D claim within the normal statutory deadline.
When does the CNF apply?
The CNF is required for all claim periods beginning on or after 1 April 2023 (unless exempt). There are transitional rules related to the exemptions that make them complex and further requirements relating to extended accounting periods. However, because of the significant consequences of not completing the CNF when one is required (claim removal), we recommend discussing the exemptions with us as soon as possible.
Why do I need the CNF?
Legislation has been passed that allows HMRC to remove R&D claims submitted without appropriate notification or exemption unless the claim itself is submitted within the claim notification deadline. The two-year deadline for amending corporation tax returns remains for submitting the actual claim so long as you have notified by the claim notification deadline or are exempt. Some claims may qualify for exemption, so do not require one, but this must be reviewed and confirmed as the rules can sometimes create complex scenarios to review.
The two‐year deadline for amending corporation tax returns remains. However, if this amendment is done without prior notification by the six‐month deadline for the CNF (where required), the claim is still deemed invalid after submission to HMRC and removed.
What do I need to do?
We will submit the CNF for you but need a few pieces of information, such as:
- A high‐level summary of the R&D activities in the period being notified for (in some cases, this may be your current accounting period).
- The accounting period start and end dates.
- The main senior contact person in the company who is responsible for the R&D claim.
- Taxpayer reference number (UTR ‐ please provide your most recent CT600 tax return form).
Connect with an Expert
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