Have you included your additional information form (AIF) when submitting your R&D claim?
Tax Reliefs including R&D
Effective from August 8th, 2023, businesses seeking to file a research and development (R&D) tax relief claim must now complete an additional information form (AIF), supporting their claim. However, almost half of all claims received by HMRC as of 3rd September 2023 have not included this form, making potential claims invalid.
Understanding the additional R&D information form
What is the additional form and why was it brought in?
The additional information form (AIF), is a document that accompanies your R&D claim. It’s aim is to provide additional details about your R&D projects, allowing HMRC to delve deeper into the specifics of your research and development efforts to better understand the true scope and significance of your R&D work. The form helps to justify the full value of your claim, and can be seen as a way for HMRC to tackle errors and suspected abuse of the R&D tax relief scheme.
What additional information do I need to provide?
The additional information form must be submitted to HMRC through their dedicated online portal, before your company’s Corporation Tax Return. Understanding what additional information you need to provide can be complicated and may require the assistance of an accountant or financial professional. At it’s most basic level, the form should include;
- The name of the person responsible for the R&D claim
- The company and contact details
- The company’s accounting start and end date
- Qualifying expenditure and indirect activities
- The number of projects claimed for
- Descriptions for 3-10 of the projects under 5 key headers:
1. Main field of science or technology
2. Baseline level of science or technology
3. Advancement in scientific or technical knowledge
4. Scientific or technical uncertainties
5. Overcoming uncertainties
What happens to my R&D claim if I forget to include the additional information form?
Unfortunately, failing to submit the additional information form prior to your company’s Corporation Tax Return will result in HMRC determining your claim to be invalid. You will receive a letter from HMRC confirming this, and your R&D claim will be removed from your Company Tax Return.
It’s important to remember that the additional information form is not just a checkbox on your to-do list, it’s now an essential component of submitting your R&D tax relief claim. We understand that these changes can open the door to questions, so think of us as more than just an information source; we’re here to guide you through your R&D Journey. If you would like to discuss your R&D Tax Credit claim in more detail please get in touch with the team today.
People also ask:
What is R&D Tax Credit?
Research and development claims are a handy tax tool, through which businesses can recover a portion of their R&D expenditures. This financial incentive encourages innovation by providing companies with tax relief or payments for their eligible R&D activities. It's a win-win situation: businesses receive support for their innovation efforts, while governments foster economic growth and technological advancement.
How can I claim R&D Tax Credit?
All Research and Development tax relief claims, along with the additional information form, must be submitted prior to the Company Tax Return (CT600). Before making a claim it is important to determine whether you could be eligible. There are many projects which could make you eligible for a claim, alongside many different forms of R&D tax relief, which we’d encourage you to speak with your accountant or financial advisor about.