Crucial R&D Tax Credit Update: are you aware of the advance notification deadline?

New rules around R&D Tax Credits have introduced a new deadline that you can’t afford to miss.

Here’s an essential heads up for business owners: there’s an important change to HMRC’s R&D Tax Credit rules that could easily catch you out. If you’re involved in any kind of innovation and claim R&D Tax Credits, you need to know this.

If you don’t claim R&D Tax Credits, check the rules to see if you qualify.

What’s the new rule?

Some companies now need to submit an Advance Notification Form to HMRC within six months of their year-end if they intend to claim R&D tax relief. Missing this deadline means your claim could be rejected, even if you’re otherwise eligible within the usual two-year amendment window.

For businesses with a 31 January 2025 year-end, this means the notification deadline is fast approaching: 31 July 2025.

Here’s the need-to-know to ensure your hard-earned innovation isn’t overlooked:

• Who it Applies To: This new rule primarily affects companies claiming R&D tax relief for the first time, or those who haven’t made a valid claim in a while (specifically, if your last valid claim was more than three years before the end of the current notification window). It also applies if a previous claim was submitted via amendment on or after 1 April 2023 for a period starting before that date, or if a previous claim was removed by HMRC. The rules around who exactly it applies to can be fiddly, and many businesses have been caught unawares.
• The Crucial Deadline: You must notify HMRC within 6 months of your company’s year-end. For January year-ends, that’s 31 July 2025.
• The Consequences of Missing It: Simply put, if you miss this deadline, your R&D claim for that period will not be accepted. Full stop.
• What’s Next: If your business has a February year-end, your deadline is hot on the heels of July – it’s 31 August 2025 (though Friday 29 August is the last working day).

While the Advance Notification Form itself is relatively straightforward to complete, the complexity lies in determining if your business even needs to submit one. Many innovative companies, actively engaged in qualifying R&D, may be completely unaware of this new requirement until it’s too late.

If your business is working on anything that could be considered R&D – developing new products, processes, or services, or making significant improvements to existing ones – it’s absolutely crucial to flag this now. Don’t let a missed deadline jeopardise your potential tax relief.

Need a quick sense-check on who this affects or want expert help navigating these new R&D tax credit rules? Don’t risk missing out: contact Swoop today for a chat – we’re here to help you unlock the funding your business needs to grow.