Additional Information Form Required for R&D Claimants from 1st August 2023

On 1st April 2023, the R&D tax relief scheme experienced a number of significant reforms, including adjustments to R&D rates and expansion of qualifying expenditure. It was also confirmed that there would be changes to the way claims are filed in in an effort to reduce fraudulent and abusive claims.

HMRC has recently released further guidance on the new ‘Additional Information’ form, which will be compulsory for anyone claiming R&D tax relief from 1st August 2023. The Additional Information Form will need to be submitted as supporting evidence for an R&D claim before the Company Tax Return. If the additional claim form is not submitted, HMRC will remove the R&D tax relief claim from the company’s Tax Return.

What is the Additional Information Form?

The additional information form will replace the current R&D claim report. At present, an R&D claim report is not mandatory when a claim is submitted, but is usually included to improve the quality of a claim.

The new Additional Information form is an online version of the claim report which will be submitted directly  to HMRC’s systems. After 1 August 2023, this process is mandatory and HMRC will reject any claims not submitted through the Additional Form.

The information required in the form is summarised below:

  • Unique Tax Reference (UTR) number of the company
  • Employer PAYE Reference number
  • VAT Number
  • Contact details of main internal R&D contact at the company who is responsible for the R&D claim
  • SIC Code
  • Agent Reference Number (if completed by an agent)
  • Contact details of any agent involved in the R&D claim
  • Accounting period start and end dates.
  • Qualifying expenditure in the following categories – employee costs, EPW’s, subcontracted R&D, software, consumables, clinical trials, data licences, cloud computing
  • Amount of the above that is qualifying indirect activities (QIAs)
  • Number of projects claimed for
  • Descriptions of the projects under 5 headings:
    • What is the main field of science or technology?
    • What was the baseline level of science or technology that you planned to advance?
    • What advance in that scientific or technical knowledge did you aim to achieve?
    • What scientific or technological uncertainties did you face?
    • How did your project seek to overcome these uncertainties?
  • Number of EPWswho worked on the projects
  • PAYE scheme reference for those EPWs

Full guidance on the information required can be found on the Government website here.

Who can submit the additional claim form?

You can submit the additional claim form if you are:

  • a representative of the company — you will need the Government Gateway user ID and password you used when you registered for Corporation Tax
  • an R&D agent — you will need the Government Gateway user ID and password you used when you registered for the agent services account

What does this mean for my R&D claim moving forward?

The Additional Information form represents a significant change to R&D tax relief and future claims. However, if you currently use a reputable R&D specialist to prepare and submit your claim there shouldn’t be any need to worry. A specialist’s process will be well aligned with the new method implemented by HMRC.

As R&D specialists with over 16 years’ experience in submitting successful claims, we already include much of the above information as a standard part of our claim process. We are therefore well prepared to continue to submit R&D claims that are compliant and optimised in accordance with the changes.

If you do your claim in-house, you need to make sure that your process aligns closely with the information listed above and you are confident you understand the changes. If not, it is now more important than ever to enlist the support of a specialist who can help you gather this information for your claim.

Looking for a specialist to help you with your R&D tax relief claim?

At Libcus, we can help. Over the years we have helped hundreds of companies successfully submit their R&D tax relief claim. Get in touch with our specialists today if you have any questions about the changes or to see if we can help your business.