How to Claim R&D Tax Relief on Your Company Tax Return

Claiming Research and Development (R&D) tax relief involves several steps that must be completed in the correct order and within specific deadlines. This guide explains the notification requirements, additional information you need to provide, and how to complete your Company Tax Return to make a successful claim.

Understanding Which Scheme Applies to You

The R&D tax relief scheme you use depends on when your accounting period began.

For accounting periods beginning before 1 April 2024, you'll use either:

• R&D Expenditure Credit (RDEC)
• Small and medium-sized enterprise (SME) tax relief

For accounting periods beginning on or after 1 April 2024, you'll use either:

• The merged scheme
• Enhanced R&D intensive support (ERIS)

Before following the claiming process outlined below, check which scheme you qualify for based on your company size, R&D spending, and other eligibility criteria.

Step 1: Submit Your Claim Notification Form

If you're claiming R&D tax relief for accounting periods beginning on or after 1 April 2023, you must submit a claim notification form if:

• You're claiming for the first time
• Your last claim was made more than 3 years before the last date of your 'claim notification period'

Working Out Your Claim Notification Period

Your claim notification period starts on the first day of your period of account (the time covered by your financial statements) and ends 6 months after the end of that period.

For example, if your period of account runs from 1 January 2024 to 31 December 2024, your claim notification period runs from 1 January 2024 to 30 June 2025.

If your period of account is longer than 12 months, you only need to submit one notification form covering all accounting periods within it.

What You'll Need for the Notification Form

To complete the claim notification form, you'll need:

• Your company's Unique Taxpayer Reference (UTR)
• Contact details of the main senior internal R&D contact (such as a company director)
• Contact details of all agents involved in the claim
• The accounting period start and end dates
• The period of account start and end dates
• A summary of your planned R&D activities showing how the project meets the definition of R&D

You can submit the form online through HMRC's digital service. After submission, you'll receive an email confirmation with a reference number—keep this safe.

Step 2: Submit Your Additional Information Form

You must complete and submit an additional information form for each accounting period you're claiming. This form must be submitted before or on the same day as your Company Tax Return (CT600). If you submit both on the same day, the additional information form must be sent first.

If you don't submit this form, or submit it after your tax return, your R&D claim will be rejected.

Information Required

You'll need to provide:

• Your company's UTR (matching your Company Tax Return)
• Employer PAYE reference number
• VAT registration number
• Business type (standard industrial classification code)
• Accounting period start and end dates (matching your Company Tax Return exactly)
• Contact details for the main senior internal R&D contact
• Contact details for all agents involved in the claim

If your period of account is longer than 12 months, you'll need to submit separate additional information forms for each accounting period (the first 12 months, then the remaining short period).

Special Requirements for Northern Ireland Companies

If your company is registered in Northern Ireland and you're claiming ERIS, your claim cannot exceed the de minimis State aid limit over the 3-year period ending with the day the claim is made. You'll need to calculate the total de minimis aid received and declare that the limit hasn't been exceeded.

Step 3: Make the Claim on Your Company Tax Return

The final step is completing your Company Tax Return (CT600), with the specific requirements varying by scheme.

Claiming RDEC (for periods before 1 April 2024)

1. Show the expenditure credit as taxable income in your profit and loss account, or add it to your profit in your tax computations

2. Put an 'X' in box 656 to confirm you've submitted the claim notification form

3. Put an 'X' in box 657 to confirm you've submitted the additional information form

4. Include bank details so HMRC can make the payment

5. Complete supplementary form CT600L

Claiming SME Tax Relief (for periods before 1 April 2024)

1. Complete your tax computations and include the additional deduction in calculating your adjusted trading profit or loss

2. If you've given up losses for a payable tax credit, don't include this in your loss carry forward figure

3. Put an 'X' in box 656 to confirm you've submitted the claim notification form

4. Put an 'X' in box 657 to confirm you've submitted the additional information form

5. If you're due a payable credit, include bank details

6. Complete supplementary form CT600L if claiming a payable tax credit

Claiming Under the Merged Scheme (for periods from 1 April 2024)

1. Show the expenditure credit as taxable income in your profit and loss account, or add it to your profit in your tax computations

2. Put an 'X' in box 656 to confirm you've submitted the claim notification form

3. Put an 'X' in box 657 to confirm you've submitted the additional information form

4. Include bank details so HMRC can make the payment

5. Complete supplementary form CT600L

Claiming ERIS (for periods from 1 April 2024)

1. Complete your tax computations and include the additional deduction in calculating your adjusted trading profit or loss

2. If you've given up losses for a payable tax credit, don't include this in your loss carry forward figure

3. Put an 'X' in box 656 to confirm you've submitted the claim notification form

4. Put an 'X' in box 657 to confirm you've submitted the additional information form

5. Complete supplementary form CT600L if claiming a payable tax credit

Claim Deadlines

The deadline for making your claim depends on the length of your period of account:

• If your period of account is 18 months or less: you have 24 months from the last day of the period of account
• If your period of account is more than 18 months: you have 42 months from the first day of the period of account

If your period of account covers more than 12 months, submit a separate claim for each accounting period.

How R&D Expenditure Credits Are Applied

For RDEC and ERIS schemes, your expenditure credit must be applied in a specific order:

Step 1: Use the credit to pay your Corporation Tax for the current accounting period

Step 2: Compare your expenditure credit with the net amount claimed (the amount claimed minus the notional tax on this amount at the applicable Corporation Tax rate)

Step 3:

• For RDEC claims: compare with your company's total PAYE and National Insurance contributions
• For ERIS claims: any amount exceeding the PAYE cap is carried forward unless the company is exempt

Step 4: Use any remaining credit to pay outstanding Corporation Tax liabilities from previous accounting periods

Any excess amounts can be given to another group company or carried forward to future periods.

Sources

• Make a claim for R&D tax relief on your company tax return
• Additional information you must submit before you claim Research and Development tax relief
• Tell HMRC you want to claim Research and Development (R&D) tax relief

This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.