Following measures introduced in April to help tackle the perceived abuse of Research & Development (R&D) tax relief (click here for more details), it is now necessary for all companies to complete and submit an additional information form to support R&D tax relief claims.

Companies are required to send HMRC an additional information form before they submit their Corporation Tax Return and will need to confirm on their tax returns that the form has been submitted, otherwise HMRC will remove the claim for R&D tax relief from their Company Tax Return.

The additional information form should include

  • The company’s unique tax reference, employer PAYE reference, VAT registration number and SIC code;
  • The contact details of the main senior internal R&D contact and any agent involved in the claim;
  • The accounting period start and end date;
  • The scheme the claim is being made under (SME or RDEC);
  • The amount of qualifying expenditure for each project; and
  • The number of projects claimed for and details of the claims.

Details of the claims should include information as to

  • The main field of science or technology;
  • The baseline level of science or technology that the company planned to advance;
  • The advance in that scientific or technological knowledge that the company aimed to achieve;
  • The scientific or technological uncertainties that the company faced; and
  • How the project sought to overcome these uncertainties.

Complying with the new measures

M+A Partners can assist with the additional information form, including submitting this on the company’s behalf.

With these new measures coming into force, together with HMRC’s increased focus on R&D tax relief claims, we recommend that R&D claims prepared in-house or by an R&D agent are reviewed by a professional to ensure they are valid.

If you need assistance in reviewing R&D claims or in making disclosures to HMRC in respect of potentially incorrect claims, please get in touch with your usual contact at M+A Partners.