R&D Additional Information Form

9 August 2023

Whilst the legislation regarding qualifying activities has not changed, now you must submit your R&D claims via Additional Information Form. 

news : Tax

There have been various changes in the R&D scheme  kicking in from April 2023.

  • Decreased SME enhanced expenditure (from 130% to 86%)  and payable tax credits (from 14.5% to 10%)
  • Introduction of R&D Intensive SMEs which retain the old payable tax credit rate of 14.5%
  • Increased RDEC rates
  • Inclusion of cloud computing and data costs
  • Advance Notification of the intention to make an R&D claim (for accounting periods beginning on/after 01 April 2023)

In addition to this there is the possibility that both the SME and RDEC schemes may merge potentially from April 2024. For more information about likely changes please read our previous blog.

On top of the above the requirement to electronically submit Additional Information about your R&D claim has started from the 8th August. From this date, companies must submit their R&D claims via HMRC’s online R&D Additional Information Form. 

Whilst the legislation regarding qualifying activities has not changed, previously there was no requirement for companies to formally document their R&D activities. 

When completing HMRC’s online form the following questions have to be answered in relation to the R&D projects:

1. What is the main field of science or technology?

2. What was the baseline level of science or technology that the company planned to advance?

3. What advance in that scientific or technological knowledge did the company aim to achieve?

4. The scientific or technological uncertainties that the company faced.

5. How did your project seek to overcome these uncertainties?

In addition the form requires detail on the qualifying expenditure related to the projects and the SIC Code.

The inclusion of the SIC code is interesting as HMRC are using this to a greater extent in their reviews to understand the sector of the claimant and check that the R&D undertaken relates to the trade of the company as this a key requirement of the R&D scheme. HMRC has explicitly identified sectors that rarely qualify for R&D relief:

  • Care homes
  • Childcare providers
  • Personal trainers
  • Wholesalers and retailers
  • Pubs and restaurants. 

This Additional Information form must be submitted before your tax return has been submitted.

How can Finerva help

At Finerva the R&D claims report we prepare have always included the information which HMRC are now making mandatory. We have done this as it has provided the best support for a successful claim and provides the required backup when your company undergoes investment or acquisition due diligence. This means we are in an excellent position to assist you with all the requirements of the R&D scheme to make a successful claim. If you are seeking professional help regarding your R&D claim, get in touch with our experienced team of advisors or Ben Rule.

We will continue to update you with upcoming changes associated with the R&D schemes merge as soon as it is available.

The information available on this page is of a general nature and is not intended to provide specific advice to any individuals or entities. We work hard to ensure this information is accurate at the time of publishing, although there is no guarantee that such information is accurate at the time you read this. We recommend individuals and companies seek professional advice on their circumstances and matters.