R&D tax relief claims serve as a crucial mechanism for reducing your business expenses against profits, while also encouraging technological progress.
Nevertheless, navigating the extensive paperwork for R&D tax claims has become increasingly cumbersome, particularly with recent modifications.
Close to 50 per cent of businesses, despite dedicating hours to filing their tax relief claims, have received them back unprocessed from HM Revenue & Customs (HMRC) due to the omission of a newly required compliance form.
As of August 2023, a supplementary form known as the Additional Information Form (AIF) has become mandatory for all R&D tax relief claims.
What is the AIF?
The latest requirement in the growing pile of R&D paperwork is the AIF, which mandates the inclusion of:
Failure to submit the AIF will lead to an automatic dismissal of your R&D claim from your company’s tax filings, resulting in zero tax relief for your R&D efforts.
Moreover, the AIF equips HMRC to assess corporate claims more thoroughly and efficiently.
Completing this form also enables your company to display compliance and transparency, thereby minimising the risk of future conflicts and enhancing the likelihood of your R&D tax credit claim being approved.