Removal of R&D claim notification requirement welcomed as Government seeks to reduce administrative burden on innovators, says leading R&D tax consultant

The Government’s decision to remove the R&D tax relief Claim Notification Form and simplify the Additional Information Form represents one of the most significant administrative changes to the UK’s R&D tax relief regime since compliance reforms were introduced, according to leading R&D tax consultancy randd uk.

While the measures received little attention during the Autumn Budget speech itself, the accompanying Red Book revealed that “the Government will remove the R&D tax credit Claim Notification Form from 1 April 2027 and simplify the Additional Information Form from autumn 2027.”

The reforms form part of a wider package of investment and innovation measures aimed at supporting growth across key sectors and regions of the UK economy.

Technical Director at randd uk, Adam Bointon, said the removal of the Claim Notification Form is likely to be particularly beneficial for innovative SMEs and start-up businesses, which can often overlook the requirement during periods of rapid growth.

“One of the biggest impacts will be felt by innovative start-up SMEs that are focused on running and growing their business,” said Adam.

“Many companies are not aware that they must notify HMRC of their intention to claim R&D tax relief within six months of their accounting period ending. In practice, businesses often do not begin preparing their accounts until after that deadline has passed, by which point the opportunity has been lost.

“Removing the notification requirement should help prevent genuine innovators from missing out on support simply because an administrative deadline was overlooked.”

The change may also create an opportunity for some businesses that previously missed the notification deadline to revisit historic periods and recover support that was previously unavailable.

“Another important group affected by this announcement will be companies with accounting periods from April 2025 onwards that were unable to submit an R&D claim because the notification deadline had been missed,” Adam explained.

“Provided those accounting periods remain within the normal two-year amendment window, some businesses may be able to revisit those claims after 1 April 2027. Unfortunately, companies with accounting periods ending in March 2025 or earlier are unlikely to benefit as the amendment deadline will already have expired.”

Alongside the removal of the Claim Notification Form, the Government has also committed to simplifying the Additional Information Form, which was introduced to provide HMRC with greater visibility over the claims being submitted.

While the precise nature of the reforms has yet to be confirmed, Adam believes any changes should focus on proportionate administration without weakening necessary compliance safeguards.

“For smaller claims in particular, there may be scope to simplify the process while retaining the key questions that help demonstrate eligibility,” he said.

“The current requirements do not generally create significant difficulties when a claim has been prepared properly from the outset, so the challenge will be striking the right balance between reducing administrative burdens and maintaining the integrity of the scheme.”

The Budget also highlighted plans for further investment targeted at specific sectors and regions, creating additional opportunities for innovative businesses seeking to accelerate growth.

However, Adam believes accountants may have a limited but important role to play in helping clients access these opportunities.

“Accountants can support businesses by making them aware of the sector-specific and regional funding that is available and identifying opportunities that may align with their activities,” he said.

“Beyond that, businesses will often benefit from specialist support to navigate funding applications and maximise the value of the opportunities available to them. Knowing when to introduce a specialist adviser can be just as important as identifying the opportunity itself.”

Looking more broadly at the UK’s innovation landscape, Adam believes a stable and supportive environment will be essential if the country is to remain internationally competitive.

“The UK already has world-class universities, researchers and innovative businesses,” he said. “The challenge is ensuring that great ideas are consistently translated into successful commercial outcomes.

“Continued investment in STEM research, support for university-business collaboration and a competitive tax environment all have a role to play. Encouraging inward investment, expanding programmes such as Knowledge Transfer Partnerships and helping innovative businesses manage practical challenges such as energy costs would also strengthen the UK’s innovation ecosystem.

“Ultimately, innovators and investors thrive in an environment where there is confidence and stability. Long-term commitment to supporting innovation gives businesses the confidence to invest in research, scale new technologies and drive economic growth.”

As further details emerge regarding changes to the R&D tax relief regime, randd uk expects accountants and innovative businesses to seek greater clarity on how the reforms will operate in practice and what opportunities they may create.

Adam Bointon

Adam Bointon is a Technical Director specialising in R&D Tax Credits for SMEs in manufacturing and software sectors. With over 15 years’ experience, he works closely with businesses to identify qualifying R&D activities and prepare clear, compliant claims. He combines technical expertise with a strong understanding of economics and finance to support successful outcomes. Adam also contributes to industry webinars and CPD sessions, sharing insights on R&D tax relief and HMRC requirements.