Changes to Research and Development Claims for Companies

Changes to Research & Development Claims for Companies

HMRC have announced some quite impactful changes to R&D claims for company tax purposes, in order to crack down on erroneous and fraudulent claims.

The main change to be aware of is the new requirement to file an “Additional Information Form” (AIF), which has to be submitted via Government Gateway BEFORE you submit the Corporation Tax return containing your claim. This form must contain not only financial data supporting your R&D claim, but also details regarding some or all of the R&D projects you’re undertaking, including what scientific or technological field your research relates to and why the research is needed in order to further that field. More details about this new AIF requirement can be found on GovUK here: https://www.gov.uk/guidance/submit-detailed-information-before-you-claim-research-and-development-rd-tax-relief

It is important to note that this AIF has to be submitted within six months of the end of the accounting period to which it relates. This is a marked difference to the submission deadline of the Corporation Tax return and may catch out business owners/directors who are not aware of this requirement.

If you wish to discuss any of this with Matthews Hanton, please contact us.