Potential new client missed R&D notification

Client missed the 6 month deadline for notification of an R&D claim

Didn't find your answer?

Can anything be done to rectify this position?

Not something i would usually get involved in but client is keen to appoint a new agent and get assistance with this.



Replies (7)

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By FactChecker
09th Jul 2024 16:31

Could you start at the beginning ... as in *what* R&D notification?
[For instance, deadline for 'registration' or for 'submission' (and there are others)?]

And what does ".. client is keen to appoint a new agent and get assistance with this" mean?
For instance, new agent for their accounts/tax work or specialist for R&D claims?

And if you "would not usually get involved in this" is a euphemism for you have no knowledge or experience of handling these claims, then this is not the one on which to start learning.
As you presumably know, the rules for R&D claims have been substantially tightened in the last year or so - and even those that *appear* to 'qualify' tend to be put through the wringer (quite rightly) by HMRC ... as in lots of follow-up questions and major delays in giving approval if it's forthcoming.

The first question I'd be asking is ... do you know enough (about the scheme and about the details of client's putative claim) to be able to form a judgement as to whether it would pass muster even IF all the deadlines were met.
Only if so would I then move on to if there was a trap-door to avoid a missed deadline (but without much confidence of finding it).

Thanks (5)
Danny Kent
By Viciuno
09th Jul 2024 16:32

Assume they have not claimed before?

If not, is there scope to change the YE*?

*don't know if this will work - just an idea.

Thanks (1)
By SkyBlue22
09th Jul 2024 16:34

First: Do they definitely need to notify?

Second: My understanding is that if you have to notify and you miss it, you can't make a claim. That said, this process is fairly new, so they could attempt do the notification anyway and see if HMRC accepts their return. My expectation though is that, unless they have a very good reason for being late, they will probably have any claim rejected (see paragraph 9 here: https://www.gov.uk/government/publications/statement-of-practice-5-2001/...)

Thanks (1)
By jamesjcrylatt
09th Jul 2024 20:47

Are you sure they've missed it?

The requirement for pre-notification applies to accounting periods commencing on or after 1 April 2023. Which is likely to be 31 March 2024 year ends (for which the six month notification window doesn't end until September 2024).

What's the accounting period?

Thanks (1)
Replying to jamesjcrylatt:
By FactChecker
09th Jul 2024 23:33

Good question ... but OP hasn't provided/confirmed ANY of the key details.
If the 'notification' missed is the 'two-year' deadline for making a claim (since the costs were incurred) then the chances are very close to zero.

Thanks (2)
Replying to FactChecker:
By Matrix
10th Jul 2024 04:16

It says the 6 month deadline. So the previous poster is right. But this is not the time to start getting involved in R&D claims.

Thanks (0)
11th Jul 2024 21:54

Seriously, it is not a good time to get involved with R&D as others have said.

- Is the AP post 1 April 2023? If not no need to do 6 month notification.
- Think about extending the AP.
- Has the company claimed in the past (from memory previous 3 years not AP) then no need for advanced notification
- Above else, an appeal can be made to HMRC to notify late of a claim - I suggest you do this before just putting the claim in the tax return

The other point to note is that who will submit the AIF? You or they? If you, you are essentially saying that you as an accountant agree with the claim - if this is one of the ones that may get challenged, you are increasing the risks of your other client's being investigated that R&D claims. There is a box on AIF for agents, are you a R & D agent or R&D and main agent, no option for I am just submitting a AIF!

Don't forget AIF has a specified format to complete, if he doesn't have a R&D agent you will need to turn his project narratives into this format - sounds simple but time consuming.

Ps. if he has forgotten, the claim is probably too small to think about as any half decent firm would have done by now!

I have had some small claims come on my desk where we just used to include in the comp, with all these complexities we have simply said our fees would outweigh any advantage

Thanks (0)