As we have discussed previously, from 8th August 2023 all companies making an R&D claim must first ensure they have submitted an additional information form. This form details the technical and financial information that makes up your claim. We have detailed the requirements of this form and how our reports comply in a previous article found here.
The new form must be completed before a company’s R&D claim is submitted to HMRC via the CT600. Its purpose is to provide HMRC with a more comprehensive understanding of a company’s R&D activities. While it may seem like an additional administrative burden, we aim to relieve as much of that burden from you as possible.
The Consequences of Non-Compliance
In a recent communication from HMRC, it has been revealed that since the 8th August, almost half of companies failed to complete the Additional Information Form before submitting their R&D claim. This has significant consequences. HMRC can use powers under Paragraph 16, Schedule 18 of the Finance Act 1998, to remove the R&D claim from your CT600 where an additional information form has not been completed. This was confirmed in a recent letter to the Chartered Institute of Taxation.
While for some companies, this can be resolved by completing the form and resubmitting, companies who have submitted their R&D claim towards the end of the 2-year claim window may find themselves time barred from making a claim if the issue cannot be resolved within the eligible window.
How We Can Help
At BTA Services, we understand the challenges businesses face in navigating the evolving landscape of tax incentives and compliance. Our team is dedicated to ensuring our clients fully benefit from the R&D tax credits scheme without getting caught up in additional red tape.
As part of our service, we offer to complete the Additional Information Form on your behalf, streamlining the process and reducing your administrative burden.