The change to regulation from HM Revenue & Customs (HMRC) is hoped to clamp down on the abuse of the system, prevent frivolous claims and halt the activities of unregulated R&D consultancies. New regulations were introduced from April 1 2023, meaning many businesses with year-end March 31 2024 have only until the end of September to register, however, once a claim is registered, businesses have up to two years to submit the detailed claim.

“Businesses need to be very careful about getting the administration of any tax relief claims organised at an early stage or they could find themselves unable to access generous tax relief sometimes worth more than 20% of the R&D spend. It’s critical that businesses take the right advice and are aware of the full range of measures being introduced as those missing the notification deadline lose the right to claim for the financial year in question.” Stuart added.

The changes apply to companies who are claiming for the first time or who have not made a claim in more than three years. The total support claimed through the UK’s two R&D schemes for the tax year 2021 to 2022 is estimated to be £7.6 billion – an increase of 11% on the previous year’s total.