Recent changes to the administration of R&D Tax Reliefs, which provide significant benefits to companies undertaking innovative activities, are now in place. Businesses must adhere to some new requirements. This includes submitting an Additional Information Form (AIF) and, in some cases, a Claim Notification form directly to HMRC.
Here’s what you need to know to ensure your company’s R&D claims are both accurate and compliant going forward.
Additional Information Form (AIF)
Since 8 August 2023, every R&D Tax Reliefs claim requires the submission of an Additional Information Form (AIF). This form must be submitted before your Corporation Tax Return (CT600) is submitted and be sent directly to HMRC via their online portal. The AIF is designed to provide HMRC with a detailed overview of the R&D activities your company has undertaken and the associated expenditure being claimed.
Key details required for the AIF include:
- A comprehensive technical narrative covering R&D projects that account for more than 50% of a claim.
- A summary of qualifying R&D expenditure.
- The company’s Unique Taxpayer Reference (UTR).
- The name and contact details of the main internal R&D contact.
- Information on any agent(s) involved in your R&D claim.
Claim Notification Form
In addition to the AIF, certain companies will also need to submit a Claim Notification form before making their R&D claim. Broadly speaking, this requirement applies to businesses that:
- Have not claimed R&D Tax Reliefs before or;
- Have not claimed R&D Tax Reliefs in the last three years.
The Claim Notification form informs HMRC of your intent to claim R&D Tax Reliefs and, where required, must at the latest be submitted within six months after the end of the accounting period for which an R&D claim is to be made.
Insights from Our R&D Incentives Director, Tom Whitworth
These changes to the way R&D Tax Reliefs is administered signals a further shift towards increased scrutiny and regulation of the R&D Tax Reliefs process. With the introduction of the AIF and the Claim Notification forms, the requirement for businesses to present detailed information, in a timely manner, relating to their R&D claims is more important than ever.
Here to Help
Our expert R&D Incentives team is here to help you navigate these complexities. Ensuring your claims are as accurate and compliant as possible.
If you’re considering claiming R&D Tax Reliefs but are unsure where to start, Tom and the team are here to help. To get in touch, please fill out the form below.
