As of 8th August 2023, all Research and Development (R&D) Tax Credit claims require the submission of an online Additional Information Form (AIF). This form provides supplementary details relating to the project in question.
The form must be completed prior to the submission of the company tax return (CT600). If the form is not submitted, the R&D claim will be removed from the return and no tax relief will be obtained.
A representative of the company, or an agent, can complete the form, but it must state who the senior internal R&D contact is, responsible for the claim, as well as any agent involved in the claim process.
The form also requires information about the company, the accounting period the claim is relating to, the projects and qualifying expenditure details.
Changes to R&D claims process to foster transparency
HM Revenue & Customs (HMRC) has expressed concerns about the behaviour of some agents in relation to R&D.
The requirement for details about the agent and a senior responsible individual is designed to foster transparency in the claim process and ensure that R&D compliance is supervised at a high level within organisations.
The form applies both to ongoing projects and accounting periods that have already concluded.
Companies must capture all necessary information, and they may need to adjust their internal systems to collect this information efficiently.
Companies with more than four projects can provide information about a selection of the projects, but this must include at least three projects that account for a minimum of 50 per cent of the qualifying R&D expenditure.
Details must also be provided in respect of advancements in technology, the technological baseline, the technological uncertainties, and the strategies used to overcome them.
There are concerns among some advisers that current reports may not meet the new requirements, particularly if the projects are similar and relate to the same technological uncertainties.
Allocating costs between projects may also pose challenges, potentially leading to increased administrative costs for businesses that comply with the new rules.
How can George Hay help?
If you are unsure about how these changes affect you and any claims you plan to make, whether now or in the future, you contact our team of experts for R&D advice.