Why are HMRC invalidating claims?
The root cause of claims being invalidated by HMRC lies in the new documentation requirement introduced by HMRC 4 weeks ago. As of August 8, 2023, all R&D relief claimants are required to complete an Additional Information Form (AIF) alongside their claims. The AIF includes details of qualifying expenditure and contact details for the main R&D contact at the company and any agent involved in the claim. Failure to include this form renders the claim invalid.
What does it mean for businesses who are claiming R&D Tax Relief?
HMRC has started sending letters to the companies that have failed to complete the new forms, notifying them of the invalidity of their R&D claims unless they take prompt action and revise their submissions. While some companies will manage to amend their submissions before the deadline, others might not have the time or resources to resubmit the paperwork and, as a result, may lose their claim altogether.
What can your business do to reduce the likelihood of HMRC invalidating your claim?
- an AIF is submitted before any R&D relief claim, and
- that you comply with the other changes to the submission process that took effect in 2023.
How to succeed when applying for R&D Tax Relief?
This increased level of complex reporting may challenge businesses and their accountants. You could face difficulties accurately capturing and presenting the required information, potentially leading to incomplete or incorrect submissions. In the ever-changing landscape of R&D tax relief, staying informed and having an expert by your side can make all the difference, and ensure your claims are compliant, maximised, and risk-free.
At IFTC, we possess the unique skillset of technical know-how and an in-depth knowledge of HMRC’s R&D tax relief legislation. This allows us to conduct a hassle-free and successful claim process by:
- Using our extensive claim experience, accumulated over many years, to maximise claims across various industries.
- Preparing the required technical reports in the format that aligns with HMRC’s interpretations of the guidelines.
- Defending your claim should HMRC have any questions.
Contact us here for further information.