Almost half of claims invalid under new R&D rules

It’s no secret that HMRC has been cracking down heavily on error-strewn or potentially fraudulent R&D tax relief claims. Several changes have been made to the scheme recently, including rate changes, adjustments to qualifying expenditure, and the recruitment of 100 new specialist R&D tax inspectors.

One of the recent changes, which applies for claims relating to periods after 8^th August 2023, is the introduction of a new “Additional Information Form (AIF)”, which must now be included in every R&D claim.

However, many claimants are struggling to comply with the new rules. HMRC have reported that nearly half of all claims they have received since 8^th August did not include the mandatory Additional Information form.

Nearly half of all new R&D claims were invalid since these changes became mandatory.

What is the ‘Additional Information Form’?

The additional information form is a digital form completed alongside the company’s CT600. This additional required information includes:

• R&D expenditure breakdown per project
• Project details, such as the main field of science or technology, what advances you aimed to achieve, and the baseline level of the science or technology you planned to advance
• Information about the company and its tax reference numbers
• Sign off on the R&D claim by a Senior Officer
• Details of any Agent you may have used to help you prepare the R&D claim must have their details shared, too.
  contact companies who have submitted invalid claims and inform
• Read more about the changes to the scheme

What happens next?

HMRC will contact companies who have submitted invalid claims and inform them of the issue and what steps they need to take to present a valid claim.

Radius claims are prepared by qualified and experienced professionals who specialise in R&D. Our team follow detailed quality assurance processes to ensure claims are fully optimised and compliant before submission.

• Contact the Radius team for advice