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How does the Additional Information Form support compliance in R&D tax claims?

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Author: Tom Mason

The Additional Information Form (AIF) is one of the most significant changes to the R&D tax system in recent years.

Introduced from 8 August 2023, the AIF is designed to gather detailed information on claims for review by HMRC – helping to identify genuine claims and those that may have been made spuriously.

It is a key compliance tool for the Treasury when administering the R&D tax scheme, so it is important that you understand how it helps to ensure compliance when preparing client claims.

What’s included?

The AIF requires your client to provide a high level of detail about some or all of their claims, depending on how many they are making on the same tax return.

This includes:

  • Company and contact details
  • R&D intensity details
  • Qualifying expenditure
  • Details and a description of each project.

Our team are here to take a look at how some of the key pieces of information in the AIF are designed to support compliance.

Competent Professionals

Some of the information required by the AIF relates to details of a senior R&D professional within your client’s organisation – usually a director or senior member of the R&D team.

This individual is responsible for the R&D claim, even if you submit it on their behalf.

By asking for this information, the AIF is helping HMRC gain direct access to a Competent Professional or other senior expert, making it easier and more streamlined to confirm data and ensure a certain level of quality in each claim.

Costs and figures

The AIF is your client’s opportunity to lay out in full the costs that are included in their claim, such as:

  • Staffing costs
  • Consumables
  • Data licensing
  • Software
  • Indirect qualifying costs

HMRC will use this data to review their claim and determine whether it meets the requirements.

In this way, the AIF is an invaluable tool for the Treasury, but it also helps your clients to outline exactly how the details of their claim are eligible.

Technical narratives

Unlike previous iterations of the claim process, the AIF requires a detailed description of how the project meets certain criteria, including:

  • The uncertainty it seeks to overcome
  • How it qualifies as science or technology
  • How it advances the collective knowledge of that field
  • Why it could not be easily worked out by another professional in that sector

The technical narrative is useful for both HMRC and your client, as it gives claimants the opportunity to convey their ideas and fully explain the case for their claim in a way that figures do not.

Ultimately, the AIF is both a tool for compliance and a golden opportunity for your clients to make the most of their claim.

Contact us for tailored support and R&D tax advice for accountants.