28 Oct Autumn Budget: Requirements for claiming R&D tax relief simplified for eligible companies
MIA Members R and D Tax Specialists has shared the following news article.
Autumn Budget: Requirements for claiming R&D tax
relief simplified for eligible companies
28 October 2026 – The Chancellor, in his Autumn 2026 Budget, has announced important
changes to the UK R&D tax relief scheme focussed on making it more straightforward for
companies to make claims. This follows a period, over the past several years, of the
government introducing enhanced compliance measures for claiming R&D tax relief which
may have resulted in an excessive number of eligible companies deciding not to claim the
valuable benefit. The government estimates that the revisions to the scheme announced by
the Chancellor should deliver over £300 million in additional tax relief over the next five years
for claiming companies.
The key changes announce in the Autumn Budget, and when they take effect, are as follows:
▪ Claim Notification Form (CNF) removal: From 1 April 2027, companies will no longer
need to submit advanced notification to HMRC within six months of the end of their
accounting period, that they intend to make a claim. This update is significant because the
CNF process, introduced in 2023, has caught out a large number of claimants, particularly
those claiming for the first time, who did not understand this notification requirement.
▪ Additional Information Form (AIF) to be simplified: From autumn 2027, HMRC plans to
simplify the AIF reducing duplication and clarifying questions about qualifying R&D activity.
This is important as it will address a lack of specifics within the existing guidance around
the qualifying project information requirements, and it will address uncertainties regarding
claiming contracted-out R&D work.
▪ R&D legislation review: The government will consult on simplifying the requirements for
claiming enhanced benefits under the scheme for R&D intensive companies. They will
also review the PAYE/NIC cap.
Garry Hague, Managing Director at R and D Tax Specialists, said: “These changes perhaps
underline a recognition by government that some of the enhanced compliance approaches
introduced in recent years may have been overly excessive resulting in legitimate claims not
being progressed by companies.
“This is a positive step from government, however eligible companies will still need to
demonstrate qualifying R&D activity under the requirements of the scheme, and they will still
need to maintain appropriate evidence to support claims. For companies that are eligible to
claim, hopefully they will see this change in approach from government as a positive signal to
review their potential to make a claim. The benefits of claiming remain not inconsiderable.
“Under the merged R&D expenditure credit (RDEC) scheme, each £100,000 of qualifying R&D
spend will generate between £15,000 and £16,200 of tax relief, payable either as a cash
refund, or credit against corporation tax. For companies that are R&D intensive, where more
than 30% of their costs are expended on R&D work, the claim value can be up to £27,000 for
each £100,000 of qualifying R&D spend.
“With nearly 17 years of experience within in the R&D tax relief scheme we understand in
detail the requirements for claiming, and we can assist companies to quickly understand if
they will be eligible to unlock this valuable benefit. We can also assist with all aspects of the
work to compile and file the required documentation.
For more information, please contact 01327 317947 / [email protected]“