Research and development (R&D) tax relief claims are a vital way to offset your business costs against profits and promote technological innovation and advances.
However, filling in the mountain of paperwork associated with R&D claims can be time-consuming.
In addition, almost half of businesses that spent hours filing tax relief claims had them sent back unapproved by HM Revenue & Customs (HMRC) because they failed to comply with HMRC’s new requirements.
As of August 2023, R&D tax relief claims require an additional information form to support all claims.
What is the additional information form (AIF)?
The key elements of the AIF form include:
- A detailed project description
- A breakdown of eligible R&D costs
- Supporting evidence and documentation
- Details of any partnerships or collaborations
Why does it matter?
If you don’t submit the AIF, your R&D claim will automatically be rejected and will be removed from your company’s tax return. This means you will receive no tax relief on R&D projects.
Additionally, the AIF provides HMRC with the ability to analyse company claims more accurately and efficiently.
The form also allows you and your business to demonstrate compliance and transparency, protecting you from future disputes and improving your chances of having your R&D tax credit claim accepted.
To speak to an accountant about making an effective and compliant R&D tax credit claim, please speak to our team.
