As of 8 August 2023, all Research and Development (R&D) Tax Credit claims require the submission of an online Additional Information Form (AIF) providing supplementary project details.
The form must be completed prior to the submission of the company tax return. If the form is not submitted, the R&D claim will be rejected by HMRC.
The form can be completed by a representative of the company or an agent, but it must include information about the senior internal R&D contact who is responsible for the claim, as well as any agent involved in the claim process.
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 to any claims being submitted from 8 August 2023, even where such claims relate to projects that have previously been claimed for.
Companies must capture all necessary information, and they may need to adjust their internal systems to collect this information efficiently.
Detailed information about the R&D projects must be included. This includes details of the nature of the advancements in technology, the technological baseline, the technological uncertainties, and the strategies used to overcome them, as well as details about the qualifying expenditure of each project.
Companies with a large number of 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.
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.
Unsure of how these changes affect you and your claims, now and in the future? Speak to our experienced team today.