R&D, Advance Notification Rules

Revised advance notification rules for R&D Claims 

For accounting period beginning on or after 1 April 2023 onwards, companies intending to submit R&D tax relief claims must notify HMRC in advance, via the Advance Notification Form (ANF).  

The notification period starts on the first day of the accounting period and ends six months after the end of the accounting period. The advance notification can be submitted anytime within this 18 month period. 

Failing to notify HMRC via and advance notification within this timeframe means that the company would be unable to make an R&D claim for the period. 

Example:
For a company with a financial year running from 1 April 2024 to 31 March 2025, the claim notification window would be from 1 April 2024 to 30 September 2025.  

When advance notification is not required 

If a company has made a valid R&D claim in the past three years (ending with the close of the notification period), then the ANF isn’t necessary.  

However, the ANF would be required under either of the following two circumstances: 

1. This is the first time the company is submitting an R&D claim  
2. The company has filed an amended return for a period which started before 1 April 2023, and the amended return was filed after 1 April 2023. 

Example: 
A company intends to make an R&D claim for the year ended 31 March 2024. The company has made one prior R&D claim for the year ended 31 March 2022, but this was an amended return which was filed to HMRC on 31 January 2024. 

As the amended return relates to a period starting before 1 April 2023, and was filed after 1 April 2023, this previous R&D claim does not count as a valid R&D claim made in the last three years, and the ANF would be required. 

However, if the amended return was filed on 31 March 2023, as this is before 1 April 2023 then this R&D claim would count as a valid R&D claim made in the last three years, and an advance notification for the year ended 31 March 2024 would not be required. 

Correction of HMRC Guidance 

HMRC acknowledged that guidance published between 8 September 2024 – 17 October 2024 was incorrect and misled taxpayers and advisors into believing that an ANF was not required if an amended R&D claim (relating to a period that began before 1 April 2023) was submitted after that date, as long as it was filed within the claim notification window. 

HMRC’s Solution 

To rectify this, HMRC have stated they may accept R&D claims where no notification was submitted, but only if both of the following conditions are met: 

1. The company submitted a valid amended Corporation Tax return for a period that began before 1 April 2023, and this was filed between 1 April 2023 and 30 November 2024; and 
2. The period for which the required ANF wasn’t delivered had an ANF deadline that fell between 8 September 2024 and 30 November 2024. 

This essentially benefits companies with year-ends between 8 March 2024 and 31 May 2024.  

However, it does not apply to companies with accounting periods ending between 1 June and 31 October 2024, whose notification deadlines have already passed. 

HMRC have not publicised official guidance on this error or rectification, and instead have advised this on their R&D forum. 

Example (in respect of HMRC corrected guidance periods) 

Company A has a year end of 31 March 2024 and they wish to submit an R&D claim. They’ve submitted one previous R&D claim relating to the year ended 31 March 2023, and this was filed via an amended return on 1 January 2025. 

Using the above two conditions: 

1. The amendment is for a period which begins before 1 April 2023, but this is filed outside of the allocated timeframe (1 April 2023 – 30 November 2024) and as such this condition is not satisfied.  
2. The ANF deadline for the year ended 31 March 2024 is 30 September 2024. This falls within the timeframe stated by HMRC (8 September 2024 – 30 November 2024), so this condition is satisfied. 

 As condition 1 has not been satisfied, Company A would not be eligible for HMRC’s solution and appeals process. 

 If Company A had submitted the amended return before 30 November 2024, then condition 1 would be satisfied and the company could appeal to HMRC. 

Next Steps for Companies 

If you think your company may be affected, please contact us and we can assist you to ensure your R&D claims are protected, and support you in the Appeals Process. 

 Appeals Process 

For companies which satisfy the above two conditions, we will support you in the process by providing to HMRC the following: 

 Evidence of authority to act on behalf of the company. 

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

For others not directly impacted, the above error and rectification highlights the complexity surrounding ANF deadlines and the need to assess whether your business is meeting all requirements.

Missing a notification can result in a total loss of the claim. 

If you would like to speak to a member of our tax team regarding any area of R&D tax, or indeed advance notification in respect of a form ANF, please  contact us on 020 7870 9050 or email us at hello@rpgcc.co.uk