New supplementary form required for R&D Tax Credit claims

Starting from 8 August 2023, all claims for Research and Development (R&D) Tax Credits will need an online Additional Information Form (AIF) to be filled out with extra details about the project.

This form must be filled out before submitting the company tax return. If it isn’t done, the R&D claim won’t be included in the company tax return (also known as CT600).

A company representative or an agent can fill out the form, but it must contain details about the senior R&D contact in the company who is responsible for the claim, as well as any agent involved in the claim process.

HM Revenue & Customs (HMRC) has expressed worries about the behaviour of some agents involved in R&D.

The need for details about the agent and a responsible senior individual is designed to make the claim process clearer and make sure that compliance with R&D is overseen at a high level within companies.

This form is for both ongoing projects and accounting periods that have already ended.

Companies must capture all necessary information, and they might need to change their internal systems to gather this information efficiently.

The form also needs details about qualifying expenses, which includes qualifying indirect activities and specifics about the R&D projects carried out.

Companies with a lot of projects can provide information about a few of the projects, but this has to include at least three projects that account for a minimum of 50 per cent of the qualifying R&D expenses.

Details must also be given about advancements in technology, the technological baseline, the technological uncertainties, and the strategies used to overcome them.

Some advisors are concerned that current reports may not meet the new requirements, especially if the projects are similar and involve the same technological uncertainties.

Allocating costs between projects could also be difficult, potentially leading to increased administrative costs for businesses that comply with the new rules.

Speak to our experienced team today to find out how these changes will affect you and your claims by visiting our website.

Posted in Business.