Almost half of claims submitted under the new rules are omitting the mandatory form and will be automatically rejected
HMRC introduced new rules for making claims for Research & Development (R&D) relief in April 2023; this includes claims for both the SME R&D relief and for RDEC.
These rules include:
We have been in contact with HMRC about how their systems are now working to match CT600 returns with the AIFs they have been receiving since 8 August.
A large number of CT returns received since 8 August containing a claim to R&D relief have been properly submitted together with an AIF.
However, almost half of the claims received between 8 August and 3 September did not have an accompanying AIF, which means they are invalid.
If you submitted a claim on or after 8 August without also completing an AIF, you’ll shortly receive one of the attached letters explaining that your claim for R&D relief is invalid and that your CT return has been corrected to remove the claim.
Provided you’re in time to amend your return, you can still make a valid claim by amending your return to add your R&D claim back in and completing an AIF at the same time.
You should note that the requirement for an AIF applies to all claims made on or after 8 August, irrespective of the accounting period the claim relates to.
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’.
Further details can also be found in the attached letters.