As of 8 August 2023, all Research and Development (R&D) Tax Credit claims require the submission of an online Additional Information Form (AIF) providing supplementary project details.
The form must be completed prior to the submission of the company tax return. If the form is not submitted, the R&D claim will be removed from the company tax return (CT600).
The form can be completed by a representative of the company or an agent, but it must include information about the senior internal R&D contact who is responsible for the claim, as well as any agent involved in the claim process.
HM Revenue & Customs (HMRC) has expressed concerns about the behaviour of some agents in relation to R&D.
The requirement for details about the agent and a senior responsible individual is designed to foster transparency in the claim process and ensure that R&D compliance is supervised at a high level within organisations.
Companies must capture all necessary information, and they may need to adjust their internal systems to collect this information efficiently.
The form also requires details of qualifying expenditure, encompassing qualifying indirect activities and specifics about the R&D projects undertaken.
Companies with a large number of projects can provide information about a selection of the projects, but this must include at least three projects that account for a minimum of 50 per cent of the qualifying R&D expenditure.
Details must also be provided regarding the area of science concerned, the advancement being sought, the uncertainties faced and how they were resolved.
There are concerns among some advisers that current reports may not meet the new requirements and that additional information might need to be obtained.