Almost 50 per cent of businesses forget vital R&D forms
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 tedious and time-consuming – and has only gotten more so with recent changes.
Almost half of businesses that spent hours filing tax relief claims have had them sent back unapproved by HM Revenue & Customs (HMRC) because they failed to complete a new vital piece of compliance.
As of August 2023, R&D tax relief claims now require an additional information form (AIF) to support all claims.
What is it?
The newest addition in the landslide of R&D claim forms is the AIF. The key elements of the 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?
Quite simply, if you don’t submit the AIF your R&D claim will automatically be rejected and taken off your company’s tax returns. This means you will receive absolutely no tax relief for your hard work 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.
