The UK Government announced a key consultation on the future of Research & Development (R&D) tax reliefs as part of the Spring Statement 2025.
HM Revenue and Customs (HMRC) is seeking views on the introduction of an advance clearance system aimed at reducing errors and fraud while providing greater certainty to businesses.
What the R&D consultation means for accountants
For accountants advising clients on R&D tax relief claims, like yourselves, this consultation could be a development in the right direction.
The proposed system would allow businesses to seek pre-approval from HMRC, ensuring compliance before submission.
Changes like this have the potential to reshape the way R&D claims are prepared, making it crucial to stay informed and contribute to the discussion.
Keeping up with developments will not only help ensure claims remain compliant but also allow you to continue delivering a reliable and strategic service to your clients.
Potential benefits of an advance clearance system for R&D tax relief
If implemented effectively, an advance clearance process could offer several advantages for accountants and their clients, including:
- Greater certainty for clients – Pre-approval from HMRC could reduce uncertainty and disputes, giving clients confidence in their claims.
- Reduced risk of compliance issues – A clearer framework may help accountants ensure that claims are fully compliant from the outset, particularly those who are less experienced in making R&D claims.
- Improved efficiency in claims processing – With advance clearance, accountants may be able to streamline their processes, reducing back-and-forth with HMRC and saving time.
An advance clearance process could be part of the solution to support accountants who lack the expertise necessary for successful R&D claims, as well as firms that may have previously given up on offering the service altogether.
No further changes to existing R&D schemes
Accountants and their clients can breathe a sigh of relief knowing that no further changes have been introduced to the existing R&D tax relief schemes in the Spring Statement.
After years of adjustments, including the merger of the SME and RDEC schemes and stricter compliance measures, stability in the system will be welcome news.
Businesses and advisors alike have been working hard to get to grips with the recent reforms, and this pause on additional changes allows firms to focus on making the most of the existing framework.
Your chance to influence change for R&D tax claims
HMRC is actively seeking input from accountants, tax advisors, and businesses engaged in R&D claims.
This is an opportunity to have your say over the system and ensure it is designed to genuinely support compliance without creating unnecessary administrative burdens for your clients.
If you want to join the conversation, you have until 26 May 2025 to submit your responses.
Encourage your clients who engage in R&D tax activities to also participate in the consultation so that the feedback HMRC receives is relevant to the business that could benefit from this change.
To learn more about the consultation and submit your feedback, visit the GOV.UK website.
Helping clients with R&D tax claims
At randd uk, we specialise in supporting accountants with expert guidance on R&D tax relief claims.
With potential reforms under discussion, accountants must remain informed.
If you need advice on how these potential changes might impact your clients or would like to discuss best practices, get in touch with our team today.
