R&D claims

Starting from August 1, 2023, a new format for submitting R&D (research and development) tax relief claims to HMRC will be in effect. A computerised “additional information” form that must be filled out in order to support a company’s claim for R&D tax relief has been created by HMRC in an effort to curtail potential exploitation of the large R&D tax reliefs.

If the research and development claim is not filed to HMRC by July31, 2023, regardless of the company’s accounting period, the digital supplementary information form will need to be filled out. If you don’t follow the new reporting guidelines, HMRC will still process the business’s tax return but will not include the R&D claim.

A company representative or an agent working on the company’s behalf may fill out the extra information form.

The form will ask for a variety of details, such as the following:

  • Contact information for the company’s primary senior internal R&D contact who oversees the R&D claim, as well as any agents involved in the R&D claim
  • Business type, such as the SIC code you are now using
  • Project information which include at least 50% of the eligible spending if more than three operations in the year or project details for every project if there were three or fewer projects in the year.

Project details must include:

  • What was the primary scientific or technological field?
  • What was the foundational state of science or technology that the business intended to develop?
  • What advancement in that field of science or technology does the corporation hope to achieve?
  • The uncertainty in science or technology that the business faced?
  • How did your venture attempt to address these ambiguities?

For companies that have not been preparing robust research and development reports to support R&D claims in the past the new rules will impose a fairly significant administrative burden.

If you need advice with your company’s R&D claim? Our research and development experts can help. Contact us Zoo at info@zooaccounting.co.uk to get started today.

R&D claims