Nearly half of R&D Tax claims fall short of new requirements

Revelation points to a lack of understanding and substandard counsel from providers.

HMRC has revealed that almost half of the R&D Tax Relief claims it received over the last month did not include the new additional information form (AIF).

In an email to providers, the agency warned, “almost half of all claims we have received so far (between 8 August and 3 September) have been submitted by customers without the required AIF. This week we will begin writing to those customers – and, where authorised, their agents – to explain that their R&D claim is invalid and to tell them what they need to do to make a valid claim.”

What is the additional information form?

All claims submitted on or after 8 August must include an AIF, a document containing detailed technical and financial information about one or more of the applicant’s development projects. 

To complete the form, companies must answer six questions about their projects, including:

  • What is the main field of science or technology?
  • What was the baseline level of science or technology that you planned to advance?
  • What advance in that scientific or technical knowledge did you aim to achieve?

Applicants must also provide a complete cost breakdown for each project they’re describing, categorised into nine types of qualifying costs, and a range of company information, including contact details for the person internally responsible for their claim.

For a full rundown of what information you have to include in your AIF, check out our detailed blog on the new requirements

Not all R&D Tax advice is created equal

Such a significant change to the application process was bound to cause teething issues. That’s why my colleagues and I in GrantTree’s R&D Tax team have been working hard to ensure as many companies as possible understand these changes by hosting free webinars and publishing a range of materials on the government’s various attempts to clamp down on fraud and non-compliance.

However, it is still extraordinary that so many applicants have fallen short of the new requirements, especially considering that, according to HMRC, more than half of companies receive outside counsel from an R&D agent. 

This only goes to show that not all R&D Tax advice is created equal. Companies looking to make sure that their upcoming claim includes a valid AIF and complies with the other changes that took effect in 2023 must seek support from a trusted specialist with a proven track record of submitting compliant claims.

Let GrantTree make sure you’re compliant

GrantTree’s R&D Tax experts are standing by to help you submit a fully compliant claim, including the AIF.

Our team has 12 years experience filing airtight R&D Tax claims, helping our clients secure over £350 million in the process. 

If you want to get working on your application or simply have a few questions about the form and the new requirements for your claim, just get in touch.