23rd September 2024
LimestoneGrey: R&D Tax Credit Deadline
LimestoneGrey has previously highlighted the new pre-notification requirement and the associated rules for R&D tax credits for Medi Wales members. However, with essential deadlines now approaching, we wanted to take this opportunity to recap this critical information and remind you of the actions you need to take now to maintain your ability to claim.
R&D tax credit pre-notification is a new requirement introduced by HMRC that requires certain companies to inform HMRC in advance if they intend to claim R&D tax credits. This notification must be submitted within six months after the end of the accounting period in which the R&D activity occurred. The rule applies to accounting periods starting on or after 1 April 2023.
For example, for companies with an accounting year ending on 31 March, the deadline to notify HMRC of your intention to claim R&D relief for the period ending 31 March 2024 is the end of September 2024. Those companies with a financial year ending 30 April have until the end of October 2024 to notify of their intention to claim for the period ending 30 April 2024.
Suppose a company fails to submit the pre-notification by the deadline. In that case, the company will be ineligible to claim R&D tax credits for that particular accounting period, even if it conducted qualifying R&D activities.
It’s important to note that submitting the pre-notification form does not obligate you to proceed with the claim; it ensures that you keep the option open should you decide to claim later.
Some companies may be exempt from this requirement. The rules surrounding exemption are complex. I would encourage any company, even if it believes it may be exempt, to seek expert advice to ensure that this is indeed the case.
LimestoneGrey can help guide you through the R&D tax credit process, including the new pre-notification requirement. Our team can assist you in preparing the pre-notification form to ensure all necessary details are included, and we can also handle the submission on your behalf.
LimestoneGrey are now offering all MediWales members a 20% reduction on fees on their services. For more information and details on how LimestoneGrey can help, please click here. Matthew Jones, LimestoneGrey’s managing director, will be visiting AberInnovation on Tuesday 24th September. To book a catch up with Matthew, please email lisa.james@limestonegrey.com.