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The Autumn Budget marked a shift in tone on the future of R&D tax relief. After three years of making different adjustments to the scheme, the government has announced further updates designed to reduce the administrative burden on companies while keeping their strong criteria in place to combat errors and fraudulent claims. In this article, we are going to discuss what these updates mean for businesses planning to make a claim over the next two years.
The Claim Notification Form
From 1 April 2027, the Claim Notification Form (CNF) will be removed for claims made on or after that date. Companies will no longer be required to tell HMRC in advance that they intend to claim R&D tax relief. This update is significant because the CNF has caught out a large number of first-time claimants since it was introduced back in 2023.
What must be taken into account is that this update will not roll out until April 2027. So, if your accounting period falls within this window and you have not claimed before or within the last three years, you still need to notify HMRC on time. This change is coming, but it is not here yet.
The Additional Information Form
From autumn 2027, HMRC will rationalise the AIF. The aim is to remove duplication, give clearer guidance on project descriptions and improve the questions on contracted-out R&D activity.
HMRC has been clear that the AIF and the compliance activity are what has made the CNF removal possible. While you can now expect a better-designed submission process, the standard of evidence to support an R&D claim will not change.
The updated legislation
The government will consult on simplifying the R&D legislation itself. Three areas were identified during the Autumn Budget review on 28 October 2026.
These are:
- ERIS intensity ratio
Complex calculations and aggregation rules used to determine whether a company qualifies as R&D intensive.
- PAYE/NIC cap
Restrictions on relief and situations where the exemption for smaller, growing companies does not apply.
- Ongoing concern status
Technical eligibility requirements that can prevent otherwise viable trading companies from claiming R&D tax relief.
Other areas worth noting
There was plenty to digest during this Budget review. However, for R&D this could be the start of a more simplified way to submitting compliant claims. The Advance Assurance Pilot launched back in May 2026 and this will remain open. HMRC continues to review whether the Expert Advisory Panel is delivering value at the midpoint of its contract.
From 16 November 2026, email consent given through the AIF will allow caseworkers to correspond by email directly. This should help speed up the enquiry process.
If you are preparing a claim for a period that falls in between these changes, or you would like further information regarding R&D claims, our team will guide you through the requirements for your specific accounting period and what your claim should contain. Please don’t hesitate to get in touch for further information.
