Research and development (R&D) tax credits serve as an essential means to counterbalance your business expenses against earnings while maintaining technological progress. However, the administrative burden tied to R&D claims has become increasingly complicated, especially with recent modifications.
Close to 50 per cent of firms that invested hours in submitting tax credit applications have seen them returned unendorsed by HM Revenue & Customs (HMRC) due to the omission of a newly required compliance document.
As of August 2023, an additional information form (AIF) is now required to accompany all R&D tax credit claims.
The latest form to join the growing pile of R&D paperwork is the AIF. The form’s principal components are:
Why is it important?
Failure to include the AIF will result in the automatic rejection of your R&D claim, leading to its removal from your company’s tax filings. Consequently, you’ll miss out on any tax relief for your R&D endeavours.
The AIF equips HMRC with the tools to scrutinise company claims more precisely and efficiently. The form also enables your business to exhibit compliance and transparency, safeguarding against future disagreements and enhancing the likelihood of your R&D tax credit claim being approved.