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 1st August 2023 will need to complete the AIF in order for a claim to be processed 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 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:
- HMRC can clearly state what information they need which will hopefully reduce the need for additional information requests
- Companies are provided with guidance on the information HMRC require
The information required for the AIF has delivered no 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.’
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