R&D tax credit additional information form – what is it and how will it affect your claim?

As part of Government’s R&D tax credit reform, changes have been made to the way an R&D tax credit claim is submitted; with the introduction of the Additional Information Form (AIF). Businesses wishing to submit a claim on or after 8th August 2023 will need to complete the AIF in order for a claim to be processed by HMRC. The date for implementation was originally 1st August 2023 but launch has been delayed by HMRC.

So what is a R&D additional information form?

The AIF is a templated document designed to provide HMRC with detailed information on the qualifying R&D activities, and the associated costs, allowing them to determine the company’s eligibility for R&D tax credits. The form must be completed online by either a director of the claimant company or its agent, i.e an accountant or R&D tax credit advisor.

Why is the additional information form needed?

Up until this point, HMRC has had no control over the format in which R&D tax credit reports are structured. Each submitted report had its own format, creating a situation where there was zero consistency. Standardising the way in which information is submitted will enhance transparency and facilitate a more efficient processing system.

Surprisingly, some companies do not even make the effort to submit a report; simply making adjustments in their corporation tax return. This introduction will force these companies to justify their decision to submit a claim.

Matthew Jones, managing director, LimestoneGrey, chartered R&D tax credit consultancy

Matthew Jones

Managing Director at LimestoneGrey

Matthew Jones, managing director at LimestoneGrey commented: ‘The introduction of the AIF may be an administrative headache for the person submitting but on the whole, it is a positive step for the industry. Standardising the format of R&D tax credit reports makes logical sense:

  1. HMRC can clearly state what information they need which will hopefully reduce the need for additional information requests
  2. Companies are provided with guidance on the information HMRC require

The information required for the AIF has delivered no big surprises for LimestoneGrey, but for those companies/agencies who have failed to submit robust R&D tax credit reports in the past, this new legislation will either force compliance or restrict future claims, increasing industry integrity.

A requirement of the AIF is to include the name of any agent involved in the claim preparation. This will provide greater transparency as spurious agencies will lose their anonymous status.’

LimestoneGrey is a specialist R&D tax credit consultancy regulated by the ICAEW and CIOT and its team are chartered tax professionals, providing the highest level of experience and competence. The fact that we are regulated ensures that we follow a strict code of conduct and have the necessary insurance covers in place to provide our clients with the upmost protection.

At LimestoneGrey, we do not mandate that companies must tie into lengthy contracts as we are confident that our clients return to us year after year as they are confident in our ability to do the job correctly and are happy with the claim preparation process we provide.

LimestoneGrey has partnered with a variety of accountants who do not offer this service in house to ensure that their clients have access to the relief and have built relationships with a variety of organisations and universities to promote the benefits of R&D tax credits and explain the eligibility criteria.

Contact us for more information