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 announced 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 us on 01327 317947 / info@randdtaxspecialists.co.uk“