Unveiling the Unseen: The Impact of the Additional Information Form on R&D Tax Relief Claims 4 Months In
In the dynamic landscape of R&D tax relief schemes, a pivotal change has quietly disrupted the routine of many R&D claim providers—the introduction of the Additional Information Form (AIF). Shockingly, over half of the R&D claims submitted in August faced rejection due to the omission of this crucial step. In October and November, the rejection rate was still a high 15%, with HMRC admitting “there is more to do”.
Since our initial coverage in April, R&D advisors have gradually acclimated to this new reality. The increasing Google search volume for “Additional Information Form” underscores the delayed awareness surrounding this process.
Navigating the intricacies of the R&D tax relief scheme can be daunting, especially while managing diverse client services. As seasoned experts in this field, our mission is clear: to demystify the process, ensuring accuracy, timeliness, and compliance with the latest regulations for our client’s claims.
TBAT are committed to extending our expertise to accountants, equipping you with insights and strategies to adeptly navigate these regulatory shifts.
Understanding the HMRC Additional Information Form:
As of 8th August 2023, the AIF has become central to the R&D tax claim journey.
What does it entail?
Basic Company Information
- Unique Taxpayer Reference (UTR)
- Employer PAYE reference number
- VAT registration number
- Standard industrial classification (SIC) code
Contact details
- Senior contacts within the company
- Any agent assisting in the claim.
Accounting Details
- The accounting period start and end date corresponding to the tax relief claim.
- Type of relief claimed (SME, RDEC or Research Intensive)
Expenditure Breakdown
- Breakdown between direct and indirect qualifying R&D activities
- Additional cost categories for accounting periods starting after April 1, 2023 (cloud computing, data license costs)
Project Specifics
- Number of projects in the claim and their descriptions
- For 1 to 3 projects, describe all projects covering 100% of qualifying expenditure.
- For 4 to 10 projects, specify projects accounting for at least 50% of total R&D expenditure.
- For 11 to 100 (or more) projects, outline projects representing at least 50% of total expenditure.
- Total Qualifying Expenditure for Each Project
Project Descriptions
- Standardised set of questions for each R&D project narrative.
Supplementary Information
- Additional insights beyond core AIF requirements can enhance a claim.
- Include details of the methodology used, biographies of professionals, or breakdowns of qualifying costs.
Key Reminders
- AIF criteria universally apply post-August 8, 2023.
- Both company representatives and agents can submit the AIF with the requisite Government Gateway credentials.
How Can Accountants Pivot?
In the face of these fresh complexities, a strategic reassessment is imperative. HMRC’s heightened scrutiny underscores the need for precision.
TBAT Innovation has proactively adapted to these changes, aligning our process and documentation with the AIF requirements. TBAT then uploads and submits the technical narrative through the AIF before the company’s accountant submits the accounts with the R&D claim. Leveraging degree and PhD qualified technical experts to ensure a company’s claim is well evidenced TBAT’s R&D tax claim specialists, ex-HMRC personnel, and ATT-qualified professionals, are poised to guide you through this evolving landscape.
If as an accountant you are seeking that technical assistance on a compliance check or to support a future R&D claim for your clients then TBAT Innovation is well placed to support you and your client.
Article written by Medilink Midlands Patron TBAT Innovation Ltd.