HMRC now require a CT600 and computation for R&D tax credit claims


The new guidelines within the Corporate Intangibles Research and Development Manual (CIRD81800), with effect from 1 April 2019, R&D tax credit claims must be accompanied by a CT600 and full computation to be successful.

A claim submitted without a correctly completed CT600 and full computation will be rejected.

So, why have HMRC made this change?

HMRC has made this change to ensure that R&D tax credits continue to serve the purpose they were designed for, i.e. to incentivise private sector investment in innovation.

In recent months HMRC has taken steps to make much clearer what they expect to see in support of an R&D tax credit claim with the CT600 change being part of HMRC’s wider focus on improving the quality of R&D tax credit claims.

The quantity of errors in R&D tax credit claims have led them to these changes which often included the following:
Insufficiently detailed claims being submitted to HMRC, many close to the 2 year deadline for making such claims.
A lack of communication between a company’s regular agent and specialist R&D agent leading to the submission of incorrect CT self-assessments.
Specialist R&D agents not having the necessary authority from a company to amend the CT600.
Any business that makes any of these mistakes when submitting a claim run the risk of a claim being rejected.


Transitional Period

There is a transitional period of three months running from 1st April 2019 to 30 June 2019, after this date, any unsupported submission of a CT600 will be rejected.

If the company does not include a CT600 and corporation tax computation, the company will receive a rejection letter with 30 days to amend and re-submit their claim with a properly completed documentation.

If the statutory deadline passes, the opportunity to make a claim is lost. HMRC will treat any late claim in accordance with Statement of Practice SP05/01.

Whilst this doesn’t specifically refer to R&D, the approach is a general one that HMRC adopt.

At Elect we only work through and with accountants to produce R&D claims as an outsourced service.

Richard Hier, Director at  Elect