As the R&D landscape continues to evolve, HMRC has introduced two significant updates in its January 2025 Agent Update. These initiatives aim to enhance the support and compliance mechanisms for businesses engaging in R&D activities. Here’s what you need to know:
1. R&D Claimant Support Packages
To assist businesses in navigating the R&D tax relief process, HMRC has begun trialling R&D claimant support packages. These will be emailed to customers following the submission of an R&D Claim Notification or Additional Information Form (AIF). The support packages are designed to provide tailored guidance and ensure claimants have access to the necessary resources.
Each email will include:
- Links to online guidance or details to search on the GOV.UK website.
- Links to HMRC YouTube videos, offering step-by-step assistance.
- Access to the new R&D Disclosure Facility, which allows businesses to address any overclaimed R&D relief.
- Contact email address for cases where forms may have been submitted on behalf of the company without prior knowledge.
Importantly, these emails are for guidance only and do not require a response. HMRC has assured businesses that the emails will never request personal or financial information. Initially, the emails will be sent to a random selection of customers as part of a trial phase, but they highlight HMRC’s commitment to improving the claimant experience.
2. New R&D Disclosure Facility
As of 31 December 2024, HMRC launched a new R&D Disclosure Facility aimed at making it easier for businesses or their agents to disclose inaccuracies in R&D tax relief claims. This facility offers a streamlined, self-service approach to address overclaims.
Key features of the facility include:
- Designed for claims out of time for amendment through the Company Tax Return (typically two years from the filing date).
- Applicable to inaccuracies identified as mistakes, whether due to reasonable care or carelessness.
- Penalties will generally be treated as ‘unprompted’, resulting in lower charges compared to HMRC-initiated interventions.
- Deliberate inaccuracies will be redirected to the Contractual Disclosure Facility.
Claimants will complete an online form on GOV.UK, providing computations, explanations, and a letter of offer. HMRC will review the disclosure, and if satisfactory, a letter of acceptance will be issued. Full guidance on how to use the disclosure facility is available on GOV.UK.
Sources:
- HMRC January 2025 Agent Update