CIRD81800 - R&D tax relief: conditions to be satisfied: claims and time limits

CTA09/Ss 1044(6), 1063(5), 1068(6), 1074(5)

R&D tax reliefs are not a mandatory adjustment to the profit of an accounting period. A claim must be made for the extra deduction.

Claims for accounting periods ending on or after 31 March 2006

FA06/S29 aligned the time limit for claims for the enhanced deduction (for both large companies and SMEs) with the time limit for claims for payable tax credits. The new time limit is the first anniversary of the filing date for the company tax return of the claimant company for the accounting period for which the claim is made. A claim for the enhanced deduction must be made in the claimant company’s return or amended return, and must specify the amount of relief claimed. A company’s claim may be amended or withdrawn only by amending the relevant company tax return.

Claims for accounting periods ending before 31 March 2006

The time limit for claims for the enhanced deduction for accounting periods ending after 31 March 2002 but before 31 March 2006 is 31 March 2008. Claims may be made, amended or withdrawn within this time limit.

The time limit for claims for the enhanced deduction under the SME scheme for accounting periods ending on or before 31 March 2002 is six years from the end of the accounting period for which the claim is made.

HMRC would expect such claims to be made in a company’s CT self-assessment return. Normally HMRC would then treat letters modifying the claim as being amendments to the return.

Claims for payable credits under the SME scheme

There are special rules and time limits for claims for payable R&D tax credits. These are dealt with at CIRD90500.

Claims made in an amendment to a Corporation Tax Self Assessment (CTSA) return 

From 1 April 2019 all R&D claims which are made in an amendment to a return need to include a completed CT600 and a corporation tax computation.

Most amendments to a return are made through the Corporation Tax Online Service (also known as the COTAX gateway - details in COM130001 and already include a completed CT600 and a corporation tax computation.  Those claims are not affected by this change. However, where the Corporation Tax Online Service is used to make an amendment to a return but a company does not include both a completed CT600 and a corporation tax computation no valid claim will have been made until both documents have been received. Any missing document can be included as an enclosure to an email.

All claims which are not made through the Corporation Tax Online Service must include a completed CT600 and a corporation tax computation. These items can be included as an enclosure to an email.

All claims in respect of which the CT600 and/or the corporation tax computations have not been provided electronically through the Corporation Tax Online Service will, for the purposes of the content in CIRD80525 under the heading ‘Once filed’, be treated as not having been made electronically.

CTSA supplementary page CT600L

From 6 April 2021 all companies which are claiming SME payable tax credits will be required to complete and submit a supplementary form, the CT600L, along with their company tax return CT600. Guidance on completing that form will be available on the HMRC Website here (HMRC website )

Advanced notification of claims

Some companies which submit claims for accounting periods which begin on or after 1 April 2023 (F(No2)A Sch1. Para 20) will need to pre-notify their claims. The information in CIRD183000 provides further information on this requirement.

New information requirement when submitting a claim

All companies which claim SME R&D Relief or Research and Development Expenditure credit on or after 8 August 2023 (SI2023/813) are required to submit an Additional Information Form. The information in CIRD181000 provides further information on this requirement.

Late claims

Where there is a late claim it should be dealt with in accordance with the guidance at Statement of Practice SP05/01. While this does not specifically refer to R&D payable tax credits, the approach is a general one that HMRC adopt. If, having considered the approach outlined there, the HMRC officer is considering refusing a late claim the officer should first make a referral to Business, Assets & International, CS&TD.