Page 6 - HMRC changes APR23
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SPOTLIGHT – R&D TAX RELIEF CHANGES AND THE IMPACT ON YOU
03. Pre-submission notification and additional information
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an unexpected obstacle?
From April 2023, companies considering applying for R&D tax relief will need to give advanced notification of their intention to claim within six months of the period-end for which they are planning to submit a claim. Companies that have already submitted a claim on any of the three previous periods will not need to give prior notification.
This will require companies new to the R&D tax relief scheme to be much more agile in identifying and assessing the size of the opportunity before them, e.g:
Is the work they have undertaken eligible for relief?
Is there sufficient spend to make a claim worthwhile? More importantly, can they undertake this assessment
within the six-month timeframe.
This challenge is compounded by the introduction in August 2023 of a mandatory requirement for the digital submission of additional information relating to R&D tax relief claims, requiring all companies to submit.
A detailed breakdown of costs across qualifying categories
A detailed description of the R&D work carried out to
establish eligibility for relief
For many SMEs, these additional requirements could
be sufficient enough obstacles to deter companies not already claiming from accessing this valuable incentive. While fostering a relationship with an R&D specialist could ensure that first-time claimants can meet the new reporting requirements.
