HMRC cracking down on R&D claims
Companies that undertake research and development (R&D) should be aware that more information will be required when claiming the associated tax relief from 1 August 2023. What’s changing?
Due to increasing concerns over the abuse of the R&D scheme, HMRC has issued guidance on the new process for claims made from 1 August 2023. An additional form will need to be completed and, if this is not submitted to HMRC prior to the corporation tax return for the year, HMRC will amend the tax return to remove the R&D tax relief. Contact details for any agent involved in the claim along with a director/employee responsible for the claim will need to be provided. Further information about the R&D project itself will need to be detailed on the form, however, where a company has more than three R&D projects, this will only be necessary for 50% of the expenditure.
The guidance goes on to describe the depth of the information required; such as the advance in a specified scientific or technological knowledge the company aimed to achieve, the uncertainties the company faced and how the uncertainties were overcome.
You can find the guidance here.
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