HMRC are reminding companies that Additional Information Forms are required for all claims for R&D tax relief

Since 8 August 2023, claims for research and development (R&D) tax relief require completion of an additional information form (AIF). The AIF is required for claims for both SME R&D tax relief and the R&D expenditure credit (RDEC).

However, we understand that almost half of all claims received by HMRC between 8 August and 3 September have not included the form.

HMRC are writing to companies (and their agents) that have submitted claims for R&D tax relief without also completing an AIF to advise them that their claims are not valid, and that HMRC will remove the claim from the relevant company tax return. The letter advises the recipient if they are within the time limit to do so, (broadly the anniversary of the filing deadline for the return) the return can be amended to add back in the R&D claim, and that they should complete the AIF. CIOT understands that subsequent completion of the AIF, along with a valid company tax return, would lead to the claim being accepted by HMRC.

The letter also advises the recipient to tick boxes 656 (if a claim notification is also required) and 657 of the company tax return to indicate respectively that a claim notification (if required) and an AIF have been submitted. 

The letter also highlights the known error preventing some RDEC claimants from making an entry in both box 655 and box 657 of the company tax return (box 655 indicates that the claim is made by a large company). The error states: 

“Error 9283 — Box 655 can only be completed if at least one of the boxes 670 or 680 is greater than 0 (zero).”

HMRC advises that where the error appears, the company should not make entries in boxes 655 and 657. Instead, we understand that HMRC agree that the company should include information in the white space on the CT return confirming that this error has been encountered, an AIF has been completed, and that an R&D claim is being made. However, HMRC emphasises that the company must still submit the AIF to make a valid RDEC claim.

Example of letter from HMRC to the company
Example of letter from HMRC to an agent

You can find the guidance relating to R&D on the GOV.UK pages ‘Research and Development tax relief’ and ‘Claiming R&D tax reliefs’.