The Chanellor included a number of changes to the R&D Tax Relief scheme in todays budget, summarised here:
Claim Notification Form
From 1 April 2027, the government will remove the R&D Claim Notification Form (CNF) requirement for claims made on or after that date. Claimants will therefore no longer have to notify HMRC in advance that they intend to make an R&D tax relief claim. The requirement remains in place for claims until then. Claimants and agents must continue to pre-notify claims while the current requirement remains in force.
The CNF was introduced in 2023 as part of a wider package of measures to tackle high levels of error and fraud in R&D tax reliefs. Those measures also included the introduction of the Additional Information Form (AIF) and stronger HMRC compliance activity. Together, these changes have helped reduce error and fraud. This means the government can now remove the CNF, while keeping other safeguards in place to identify and tackle incorrect claims.
Additional Information Form
From autumn 2027, HMRC will rationalise the Additional Information Form (AIF) that companies must submit to HMRC in support of an R&D tax relief claim. The improvements will include reducing unnecessary duplication, improving the information requested on contracting and on externally provided workers, and providing greater clarity on project information requirements and the Enhanced R&D Intensive Support intensity ratio. HMRC welcomes practical suggestions on these and other improvements to the AIF through the existing R&D policy mailbox (randd.policy@hmrc.gov.uk), using “AIF simplification ideas” as a subject line.
Longer term aims
HMRC will consider the R&D claims process end-to-end, with the aim of identifying opportunities to simplify the customer journey, address design issues at source and reduce unnecessary burdens while preserving the information and safeguards needed to administer the reliefs effectively.
R&D Expert Advisory Panel
Established in September 2025, HMRC’s R&D Expert Advisory Panel provides external expertise to support the administration of R&D tax reliefs. At the midpoint of its two-year contract, HMRC is reviewing whether the panel is delivering its intended benefits and remains the most effective model.
Greater collaboration across government
HMRC is also collaborating across government to make better use of data and expertise on R&D, supporting HMRC’s understanding of the R&D that businesses carry out. This will help to improve the experience for innovative businesses by reducing uncertainty, rationalising processes and reducing administrative burdens.
Simplification of R&D legislation
The government proposes gathering stakeholder views on how to simplify the R&D relief legislation to make the rules easier to comply with and better deliver the policy aims. We want to hear further ideas from stakeholders, but are already aware from some of you that it may be useful to address the following:
The ERIS intensity ratio – clarity on the definition of the total expenditure and complexity of the aggregation rules.
The PAYE / NIC cap – occasions where the exemption from this cap, which is intended to support smaller, growing businesses, may not always apply.
Going concern status – occasions where a company can lose this status for technical reasons where a viable trade still exists.
Government will be seeking views on these areas as part of work announced at Budget on Corporate Tax Simplification for Business Investment. Further details of the government’s Budget announcements are set out in the Government response to the Tax Support for Entrepreneurship: Call for Evidence.
Other updates
The targeted advance assurance pilot, launched in May 2026, remains open for applications. HMRC is gathering views from participants about the value of the service and how it might be improved, which will inform future decisions on assurances within R&D.
From 12 October 2026, HMRC staff working in R&D have included a signpost to advance assurance guidance in their external email signatures. The same information is also included in the automatic reply from the main R&D compliance mailbox.
From 16 November 2026, HMRC will update the consent to communicate by email pages within the AIF so that caseworkers can rely on email consent provided through the form, reducing the need to contact customers separately.
Curtesy of RDCF 28 October 2026