Claim Notification Forms (CNFs) are still a hot topic. When are they needed, when are they not? We also then had the recent concession from HMRC who agreed to re-assess some claimants who originally lost out due to incorrect guidance from HMRC itself.
Why is the 30 June 2025 a key deadline?
There isn’t any publicly available information of the percentages of UK business with a December year-end, but 31 December is widely regarded as the most common financial year-end date among UK companies. This therefore must correlate that the percentage of potential R&D claimants with a December year end is likely to be higher than other month-ends. It is likely that as an accountant your portfolio includes some clients, with a December year-end who have the expectation that they will make an R&D tax relief claim.
Businesses with a 31 December 2024 year-end have until 30 June 2025 to file a CNF, if it is required. This is to let HMRC know of their intention to make an R&D tax credit claim. Should this deadline be missed, the business will automatically lose the ability to claim for that year. These companies will not be able to appeal under HMRC’s recent concession.
When is a CNF needed?
There is still confusion around whether a CNF is needed. CNFs are not just for new claimants, but also existing claimants that find themselves with this requirement due to the timing and way prior claims have been filed. Use our Claim Notification Form – a definitive guide for more information.
Since CNFs came into force for accounting periods starting on or after 1 April 2023, the first year-end that was required to assess their need to file were those with an APE of 31 March 2024, and the notification needed to be delivered by 30 September 2024. These do form part of the group that may have a reprise due to the recent concession, but once HMRC corrected their guidance and issued the correct position, the requirement has become a non-negotiable.
What action is required?
We have been speaking with many accountants who are concerned about clients that either have historically made R&D tax credit claims or may wish to make their first claim. Our answer to them is to get their clients checked now, before it’s too late.
It’s far better to check and find that they either don’t need to notify HMRC, or don’t have any R&D compliant projects – both give certainty and prevent a difficult future conversation when the deadline has been missed, and the benefit has been lost.
