7th August 2023Introducing the new R&D Additional Information Form

From the 8 August 2023, all businesses claiming R&D tax relief or expenditure credit will be required to submit an additional information form through HMRC’s new online portal before they submit their company’s Corporation Tax Return. The aim of this initiative is to reduce the number of fraudulent R&D claims being made.

Andrew Tall, Corporate Tax Partner at HW Fisher, explains what needs to be included in the additional information form and how businesses can improve their chances of making a successful claim.

What needs to be included in the additional information form?

Each additional information form will need to be signed by a named senior officer of the claimant company and must contain detailed information on the R&D project – including the name of the agent who has advised the company on compiling the claim.

The form must also include a breakdown of the costs across categories, the number of R&D projects carried out and describe some or all of the projects depending on the number of projects being submitted.

• For 1-3 projects, companies need to describe all the projects that are being submitted to the claim.
• For 4-10 projects, they need to describe sufficient projects to cover 50% or more of the qualifying expenditure with a minimum of 3 projects described.
• For more than 10 projects, they need to describe sufficient projects to cover 50% or more of the qualifying expenditure with a minimum of 3 projects described. If this would require details of more than 10 projects, then only 10 need be described.

New claimants, or companies who have not claimed within the last 3 financial periods, must pre-notify HMRC of their intention to claim within 6 months of the end of its period of account. This notification must be made before the claim is submitted and contain a summary of the R&D activity.

What happens if you don’t submit the additional form?

HMRC has confirmed that if the additional information form has not been completed, the R&D claim will be rendered invalid. In this instance, HMRC will have the power to remove the R&D claim from the company’s tax return where it believes a claim was made “in error”.

What is the advice to businesses?

The additional information form requires extra measurements, thorough checks, and meticulous record keeping. You can find a full, detailed list of the costs you can claim on and the information needed to back up your claim on HMRC’s website.

Given the extra amount of information that firms will need to submit, we recommend that firms start preparing for their claim as far in advance as possible to allow themselves enough time to gather all the documents needed, and to avoid any costly, timely mistakes.

HW Fisher has supported many clients in successfully claiming R&D tax relief. If you would like advice on your next claim, reach out to Andrew Tall.