Index of the Article:
Audio Summary of the Most Important Points:
Introduction & Importance of the HMRC Additional Information Form for R&D Tax Relief
If you're running a business in the UK and claiming Research & Development (R&D) tax relief, there's a big change you need to be aware of: HMRC’s Additional Information Form. Since August 2023, this form has become a mandatory requirement for all companies submitting R&D tax relief claims. If you fail to submit it, your claim will be rejected—no exceptions.
What is the HMRC Additional Information Form?
The HMRC Additional Information Form is an online submission that provides extra details to support an R&D tax relief claim. It ensures that companies claiming relief provide enough information for HMRC to assess their eligibility and prevent fraudulent or incorrect claims.
💡 Key takeaway: You must submit this form before or on the same day as your Company Tax Return (CT600). If not, HMRC will reject your claim outright.
Why Was This Form Introduced?
Before August 2023, R&D claims were often submitted with minimal details, leading to:
High levels of fraud and abuse – Some companies made exaggerated or entirely false claims.
HMRC struggling with compliance checks – Without detailed project descriptions, it was difficult to verify eligibility.
Increased scrutiny on all R&D tax relief claims – In response, HMRC tightened rules to ensure only genuine innovation is rewarded.
According to HMRC, the total cost of R&D tax relief fraud and error in 2020-21 was £1.13 billion—over 16.7% of all R&D tax relief claims. The new form is part of HMRC’s crackdown on fraudulent claims.
Who Needs to Submit the Additional Information Form?
Any company making an R&D claim under:
✅ Small and Medium-sized Enterprise (SME) R&D tax relief scheme
✅ R&D Expenditure Credit (RDEC) scheme for large companies
🚨 Important note: If you’re submitting a claim on behalf of a group of companies, each company must submit its own form separately.
💡 Are there any exemptions? No. Even if you’ve been claiming R&D relief for years, you still have to submit this form.
Deadlines & Submission Rules
The Additional Information Form must be submitted before or on the same day as the Company Tax Return (CT600).
If you submit the CT600 first, HMRC will automatically reject the claim.
If you’re claiming for multiple accounting periods, you must submit a separate Additional Information Form for each period.
Submission is online-only—there’s no option for paper filing.
🔗 Official HMRC guidance: Submit your R&D claim additional information form
What Happens if You Don’t Submit the Form?
🚨 Your claim will be rejected.
If you forget to submit the Additional Information Form:
HMRC will remove your R&D claim from your tax return.
If your company tax return submission deadline has passed, you won’t be able to amend it to include the claim—meaning you lose out on the tax relief entirely.
If your deadline hasn’t passed, you’ll have to resubmit everything properly, including a revised tax return.
How Does This Affect SMEs vs. Large Companies?
Feature | SME R&D Tax Relief | R&D Expenditure Credit (RDEC - Large Companies) |
Eligibility | Companies with fewer than 500 employees & turnover under €100m or balance sheet under €86m | Companies not meeting SME criteria |
Relief Type | Enhanced deduction on qualifying R&D costs | Taxable credit on eligible R&D expenditure |
Impact of New Form | Required for all SME claims | Required for all large company claims |
🔎 Example: A small AI startup claiming £50,000 in R&D tax relief needs to submit an Additional Information Form detailing its qualifying costs, project descriptions, and technological advancements. Similarly, a large pharmaceutical company claiming £1 million in R&D tax credits must do the same.
What Information Needs to Be Included in the Form?
The Additional Information Form requires:
Company details – UTR number, SIC code, PAYE reference, VAT number.
Accounting period – Start and end dates of the claim.
R&D intensity details – If you’re an SME, whether you meet the 40% R&D intensity threshold.
Connected companies – Details of any linked businesses.
Project descriptions – Detailed breakdown of each R&D project, including scientific or technological advancements.
Qualifying expenditure breakdown – Payroll costs, software, utilities, subcontractor payments, etc.
PAYE cap calculations – If applicable, details of external workers' PAYE references.
💡 Why is this important? HMRC now requires clear, well-structured justifications to approve claims. Vague descriptions like "developing new software" will likely be rejected.
Key Takeaways
✅ The Additional Information Form is now mandatory for all R&D tax relief claims.
✅ Failure to submit it = automatic rejection of your claim.
✅ Submission must happen before or on the same day as the CT600.
✅ Applies to both SMEs and large companies claiming R&D tax relief.
✅ HMRC introduced this form to reduce fraud and errors, ensuring only genuine innovation is rewarded.
Step-by-Step Guide to Completing the HMRC Additional Information Form for R&D Tax Relief
Let’s dive into the step-by-step process of filling it out correctly. This section will break down each part of the form, including what information to provide, common mistakes to avoid, and tips to ensure your claim gets approved quickly.
How to Access & Submit the HMRC Additional Information Form
🔗 Where to submit? You must complete the form online through the official HMRC portal:
Who Can Submit the Form?
✅ A company director or financial officer
✅ An agent (accountant, tax advisor, R&D consultant, etc.) with an agent services account
✅ An employee authorized by the company
🚨 Agents MUST be registered with HMRC’s Agent Services Account before they can submit the form.
When to Submit the Form?
Before or on the same day as your Company Tax Return (CT600).
If you file the CT600 before submitting this form, your R&D claim will be automatically rejected.
Breakdown of Each Section in the HMRC Additional Information Form
The form consists of seven key sections, each requiring specific details. Let’s go through them one by one.
1️⃣ Company Details
📌 What You Need to Provide:
Company Name
Unique Taxpayer Reference (UTR) – Must match the one on your CT600.
PAYE Reference Number
VAT Registration Number (if applicable)
Standard Industrial Classification (SIC) Code – This identifies your industry.
💡 Common Mistakes to Avoid:
❌ UTR mismatch – If your UTR doesn’t match the one in your CT600, HMRC will reject your claim.
❌ Incorrect SIC code – Your SIC code should reflect your actual business activities.
2️⃣ Accounting Period Details
📌 What You Need to Provide:
Start and End Dates of the Accounting Period
If you’re claiming for a period longer than 12 months, you need to submit two separate forms:
One for the first 12-month period.
One for the remaining period.
📌 Example: If your financial year runs from Jan 2023 – April 2024 (16 months):
✔️ Submit one form for Jan 2023 – Dec 2023.
✔️ Submit another form for Jan 2024 – April 2024.
💡 Common Mistakes to Avoid:
❌ Mismatched dates with CT600 – Ensure that the accounting period exactly matches your tax return.
3️⃣ R&D Intensity Details (For SMEs Only)
📌 What You Need to Provide:
Your company’s total relevant costs
Total R&D expenditure
Costs from connected companies (if applicable)
🔹 Why This Matters:
If your R&D expenditure accounts for at least 40% of total company costs, you may qualify for enhanced R&D tax relief (R&D-intensive SME scheme).
💡 Common Mistakes to Avoid:
❌ Misreporting total costs – Ensure all operating expenses are included, not just R&D costs.
4️⃣ Connected Companies
📌 What You Need to Provide:
Names of any connected companies (subsidiaries, parent companies, or companies with shared ownership).
Their R&D expenditures and total costs (if applicable).
🔹 Why This Matters:
If you’re linked to another company, your SME status could change. This affects how much R&D tax relief you can claim.
💡 Common Mistakes to Avoid:
❌ Forgetting to declare linked companies – HMRC can cross-check records and reject your claim if you omit details.
5️⃣ R&D Project Details (Most Important Section)
📌 What You Need to Provide: For each R&D project you’re claiming, you must describe:
Required Information | What HMRC Wants to See |
Main field of science/technology | The industry sector your project falls under. |
Baseline level of knowledge | What was already known before the project started? |
Scientific/technological advance | What new knowledge did the project aim to create? |
Scientific/technological uncertainties | What were the key technical challenges that couldn’t be solved easily? |
How you tried to overcome these uncertainties | Describe your R&D process and testing methods. |
Qualifying expenditure per project | The cost of staff, software, subcontractors, etc. |
📌 Example of a Strong R&D Description:"
Our company aimed to develop an AI-based medical diagnostic tool integrating non-invasive imaging technology. The main technological uncertainty was ensuring real-time data processing with an accuracy rate of 98%. Existing technology lacked the necessary computational speed and precision. Through iterative development, machine learning model training, and advanced data integration techniques, we successfully overcame these uncertainties."
💡 Common Mistakes to Avoid:
❌ Vague descriptions – HMRC will reject claims that lack technical detail.
❌ Focusing on commercial benefits – HMRC only cares about scientific & technological advancements, not financial gains.
6️⃣ PAYE Cap Details (For SME Claims)
📌 What You Need to Provide (if applicable):
PAYE reference numbers for externally provided workers.
The number of contractors/subcontractors involved in the R&D project.
🔹 Why This Matters:
SMEs claiming cash credit must ensure their claim does not exceed 3x their PAYE & NIC liabilities.
💡 Common Mistakes to Avoid:
❌ Exceeding the PAYE cap limit – If your R&D costs far exceed your PAYE bill, part of your claim may be disallowed.
7️⃣ Additional Supporting Documents (Optional, but Recommended)
📌 You Can Include:
An R&D Report explaining your claim methodology.
Supporting documents such as test results, prototypes, technical specifications, etc.
💡 Why This Matters: Providing additional evidence reduces the chances of an HMRC inquiry.
Final Submission & Next Steps
✅ Save a copy of your form before submitting – You won’t be able to access it later.
✅ After submission, you’ll receive an email confirmation with a reference number.
✅ Use this reference number if HMRC contacts you for further information.
🚀 Pro Tip: If you submit multiple R&D claims per year, keep detailed records of all projects so that future claims are easier to complete.
Key Takeaways
✅ Filling out the Additional Information Form correctly is essential to avoid claim rejection.
✅ Project descriptions must focus on scientific & technological uncertainties.
✅ Ensure accounting period dates match your CT600 exactly.
✅ Failure to submit the form before or with the CT600 will result in claim rejection.
✅ Supporting documents can strengthen your claim and reduce HMRC scrutiny.
How to Write a Strong R&D Project Description & Avoid Common Pitfalls
Now that we’ve covered how to complete the HMRC Additional Information Form, it's time to focus on the most crucial section: describing your R&D projects. This part of the form determines whether your claim is accepted, delayed, or rejected, so it’s essential to get it right.
In this section, we’ll explain:
What HMRC expects in a project description
Key elements to include
Common mistakes that lead to rejections
Examples of strong vs. weak project descriptions
Why Project Descriptions Matter in R&D Tax Relief Claims
HMRC needs to determine whether your projects meet the strict definition of R&D for tax relief purposes. A well-structured project description should:
Demonstrate a genuine scientific or technological advance
Clearly explain the uncertainties involved
Show that the work could not be easily solved by a competent professional
Provide enough technical detail without unnecessary commercial information
A weak project description that lacks clarity or technical depth may lead to delays, HMRC inquiries, or outright rejection of your claim.
What HMRC Expects in a Project Description
Each project you include in your claim must contain the following elements:
1. The Main Field of Science or Technology
Clearly define the industry or sector the R&D project falls under. This could be:
Artificial intelligence and machine learning
Biotechnology and pharmaceuticals
Engineering and manufacturing
Software development
Renewable energy
Example:"Our R&D project was in the field of artificial intelligence, specifically developing a machine learning model for automated medical image analysis."
2. The Baseline Level of Knowledge or Capability
Explain what was already known before your project started. This sets the foundation for why your work was necessary.
Example: "Existing medical imaging software lacked the ability to detect rare conditions with high accuracy. Standard AI models had difficulty analyzing certain image types, leading to high false-positive rates."
3. The Scientific or Technological Advance
Describe how your work sought to push beyond existing knowledge. HMRC wants to see that you attempted to make a genuine advancement, not just apply existing technology in a new way.
Example: "Our goal was to develop an AI-based image recognition tool that could process MRI scans with a 98% accuracy rate, reducing diagnostic errors by 30% compared to existing methods."
4. The Scientific or Technological Uncertainties
This is the most important section. You need to show that your project faced challenges that could not be easily solved.
Example: "One of the key uncertainties was whether a neural network could be trained to recognize anomalies in low-quality MRI scans without excessive false positives. There were no existing solutions for this specific issue."
5. How You Tried to Overcome These Uncertainties
Explain the methods, testing, and problem-solving your team used.
Example: "We conducted multiple iterations of model training, using a dataset of over 100,000 MRI scans. We experimented with different convolutional network structures and implemented new pre-processing techniques to enhance image quality."
6. The Outcome and Ongoing Work
State whether the uncertainty was resolved, partially resolved, or if further research is needed.
Example: "We successfully reduced false positives by 25% but are continuing to refine the model to achieve our 98% accuracy target."
Common Mistakes That Lead to Claim Rejections
Vague or generic descriptions
Weak: "We developed a new AI tool for medical imaging."
Strong: "We created a deep-learning model for MRI analysis, aiming to reduce false positives by 25%."
Focusing on business benefits rather than technical advancements
HMRC does not care about commercial advantages like "this will help us attract new customers." They want to know about scientific or technological progress.
Failing to explain uncertainties
If your project had a clear solution from the start, it may not qualify. You must show that experts in the field did not already know how to achieve the outcome.
Not providing enough technical detail
Avoid statements like "We improved processing speed."
Instead, specify "We optimized our neural network's architecture by implementing residual connections, reducing computational time by 30%."
Submitting too many small projects
If you claim for more than 10 projects, HMRC requires descriptions for at least the top 10 with the highest qualifying expenditure.
Instead of listing many minor projects, focus on the most significant ones.
Example: Strong vs. Weak Project Descriptions
Weak Example | Strong Example |
"We built a new software system to manage customer data." | "We developed a secure, AI-driven encryption algorithm for real-time customer data protection, addressing security vulnerabilities in existing methods." |
"Our team worked on a new type of engine for electric vehicles." | "We designed a high-efficiency battery management system for electric vehicles, overcoming thermal regulation issues that previously caused overheating." |
"We improved our company’s internal process for managing customer orders." | "We implemented an automated order processing system using natural language processing to reduce manual input errors by 40%." |
The strong examples provide specific details about the technological challenges and advancements, while the weak examples are too broad and do not demonstrate scientific or technological uncertainty.
How Many Projects Do You Need to Describe?
Number of Projects Claimed | Number of Detailed Descriptions Required |
1-3 projects | Describe all projects |
4-10 projects | Describe at least three projects that together account for at least 50% of total R&D expenditure |
More than 10 projects | Describe at least 10 projects with the highest R&D expenditure |
If your SME claim includes multiple R&D tax relief schemes, you need to separately describe projects under:
The SME R&D tax relief scheme
The R&D expenditure credit (RDEC) scheme
Key Takeaways
HMRC requires a high level of technical detail in your project descriptions.
You must show scientific or technological uncertainties, not just business improvements.
Weak descriptions with generic language will likely result in claim rejection.
If you’re submitting a large number of projects, focus on those with the highest qualifying expenditure.
Strong descriptions clearly explain what the challenge was, why it was uncertain, and how you tried to solve it.
Common Mistakes, Rejections & How to Avoid Them
Filing for R&D tax relief is a complex process, and many companies make costly mistakes that lead to claim rejections, HMRC inquiries, or delays in processing. Given that HMRC has increased its scrutiny of R&D claims, it is now more important than ever to ensure your claim is accurate, compliant, and well-documented.
This section will cover:
The most common mistakes businesses make when filing R&D claims
Why HMRC rejects claims and how to avoid these pitfalls
What to do if your claim is rejected or HMRC launches an inquiry
How to improve your claim submission for a smoother approval process
1. Common Mistakes That Lead to R&D Claim Rejections
1.1 Submitting the Company Tax Return (CT600) Before the Additional Information Form
The most frequent reason for automatic rejection is failing to submit the Additional Information Form before or on the same day as the Company Tax Return (CT600). If you file the CT600 first, your claim will be removed, and you may lose out on tax relief for that period.
How to avoid this mistake:
✔ Always submit the Additional Information Form first, then submit the CT600 immediately afterward.
✔ Double-check that both submissions are correctly timestamped on the same date.
1.2 Vague or Incomplete R&D Project Descriptions
HMRC needs detailed explanations to understand why a project qualifies as R&D. Many claims are rejected because they provide unclear, generic, or overly brief descriptions.
Weak Description (Likely to Be Rejected):
"We developed a new AI tool to improve customer service response times."
Strong Description (More Likely to Be Accepted):
"We developed a machine learning model that predicts customer inquiries based on historical chat data. The scientific uncertainty was whether an AI model could accurately process and categorize unstructured text data while maintaining over 90% accuracy. To overcome this, we conducted multiple iterations of natural language processing models and experimented with various transformer-based architectures."
How to avoid this mistake:
✔ Clearly explain the technological or scientific challenge your project faced.
✔ Avoid mentioning commercial or financial benefits—focus on scientific/technical advancements.
✔ Use precise technical language without unnecessary jargon.
1.3 Overlooking the PAYE Cap for SME Claims
For SME R&D tax credit claims, there’s a cap on the amount of credit you can claim based on your company’s PAYE and NIC liabilities. Since April 2021, the cap is 300% of the company's total PAYE & NIC bill, plus £20,000.
If your R&D claim is larger than this cap, HMRC will limit your tax relief, reducing the amount you receive.
How to avoid this mistake:
✔ Check your PAYE and NIC figures to ensure your claim does not exceed the allowable limit.
✔ If you exceed the limit, consider adjusting your claim to fit within the cap.
1.4 Claiming for Ineligible R&D Expenditure
Not all costs qualify for R&D tax relief. Many claims are rejected because businesses try to include:
❌ Marketing and advertising costs
❌ Routine product testing and quality control
❌ Day-to-day operational expenses
❌ Prototype costs not used for R&D purposes
Eligible R&D Costs Include:
✔ Staff costs (salaries, pension contributions, NIC)
✔ Software used for R&D
✔ Subcontractor costs (if they meet the eligibility criteria)
✔ Materials used in the R&D process
How to avoid this mistake:
✔ Cross-check your claim against HMRC’s qualifying cost categories before submission.
✔ Provide clear explanations of why each cost is R&D-related.
1.5 Misunderstanding SME vs. RDEC Claims
Some companies mistakenly claim SME R&D tax relief when they should be using the R&D Expenditure Credit (RDEC) scheme.
You must claim under RDEC if:
You received notified state aid for the R&D project.
Your company is part of a large group and does not meet SME criteria.
You are subcontracting to a large company.
If you claim under the wrong scheme, HMRC may reject your entire claim.
How to avoid this mistake:
✔ Confirm whether you qualify for SME tax relief or RDEC before submitting your claim.
✔ If you have received government grants, check whether they affect your SME eligibility.
2. What to Do If Your R&D Claim Is Rejected
2.1 Why HMRC Rejects Claims
Common reasons for claim rejection include:
Failure to submit the Additional Information Form before the CT600
Project descriptions lacking scientific/technical detail
Claiming ineligible expenses
PAYE cap exceeded for SME claims
If HMRC rejects your claim, they will issue a compliance letter explaining why.
2.2 Steps to Take If Your Claim Is Rejected
Step 1: Review the Rejection Notice
✔ Identify the specific reasons for rejection.
✔ Check if you missed submitting required documents.
Step 2: Correct the Issues & Resubmit
✔ If the error is minor (e.g., missing details in your project description), you may be able to amend your claim and resubmit it before the deadline.
✔ If your tax return deadline has already passed, you may lose the ability to claim for that period.
Step 3: Contact HMRC If Necessary
✔ If you believe the rejection is unfair, you can request a review by contacting HMRC.
✔ If needed, seek advice from an R&D tax relief specialist or accountant.
3. How to Improve Your R&D Claim & Reduce HMRC Scrutiny
3.1 Maintain Clear & Accurate Records
HMRC may request additional evidence, so keeping detailed records of your R&D activities is crucial.
✔ Maintain project documentation, technical reports, meeting notes, and testing results.
✔ Record staff time spent on R&D activities.
✔ Store receipts and invoices for eligible costs.
3.2 Strengthen Your Project Descriptions
✔ Use precise technical language to explain uncertainties and advancements.
✔ Provide concrete evidence of your R&D process.
✔ Ensure descriptions are written by competent professionals in your industry.
3.3 Seek Professional Assistance If Needed
✔ If your claim is complex, consider using an R&D tax specialist to review it before submission.
✔ Tax advisors can help identify eligible expenses, avoid common pitfalls, and respond to HMRC inquiries.
Key Takeaways
Many R&D claims are rejected due to missing forms, vague descriptions, or ineligible costs.
Submitting the Additional Information Form before or with the CT600 is critical to avoid automatic rejection.
Project descriptions must clearly outline scientific/technological uncertainties.
Keeping detailed records of R&D work can strengthen your claim and protect against HMRC inquiries.
If HMRC rejects your claim, you may be able to correct errors and resubmit, but acting quickly is essential.
Submission Process & What Happens After Submission
At this stage, you understand why the HMRC Additional Information Form is crucial, how to complete it correctly, and the common mistakes that lead to claim rejections. Now, let’s walk through the final step: submitting the form and what happens afterward.
In this section, we’ll cover:
How to submit the form correctly
What happens after submission
Expected processing times
What to do if HMRC requests more information
How to handle an HMRC compliance check or inquiry
1. How to Submit the HMRC Additional Information Form
1.1 Submission Process – Step by Step
The Additional Information Form must be submitted online through HMRC’s portal. Follow these steps:
Step 1: Prepare Your Information
✔ Double-check that all required company details, project descriptions, and qualifying costs are correctly entered.
✔ Ensure that your accounting period dates match your Company Tax Return (CT600) exactly.
Step 2: Access the HMRC Portal
Go to the official submission page:
Step 3: Choose the Submission Method
If you are a company director, log in with your Government Gateway account.
If you are an agent (accountant or tax advisor), log in with your Agent Services Account.
Step 4: Submit the Form Before the CT600
✔ Ensure you submit the Additional Information Form first, before filing the CT600.
✔ If you submit the tax return first, HMRC will automatically reject your R&D claim.
Step 5: Save a Copy of the Submission Confirmation
✔ After submitting, HMRC will send an email confirmation with a reference number.
✔ Save this reference number in case HMRC needs to verify your claim.
2. What Happens After Submission?
2.1 How Long Does It Take for HMRC to Process R&D Claims?
Type of Claim | Estimated Processing Time |
SME R&D Tax Credit (cash payment) | 40-90 days |
SME R&D Tax Relief (loss carry-forward) | 40-90 days |
R&D Expenditure Credit (RDEC) | 4-6 months |
💡 Important:
If HMRC needs more information, they will contact you within 4-6 weeks after submission.
If you haven’t received a response after 90 days, follow up with HMRC.
2.2 Possible Outcomes After Submission
Outcome | What Happens Next? |
✅ Claim Approved | HMRC processes your R&D tax relief, and you receive the benefit within the expected timeline. |
⏳ HMRC Requests More Information | You must provide additional documents or explanations within the deadline given. |
🚨 HMRC Opens an Inquiry | You may need to justify your claim in more detail. This can delay approval by several months. |
❌ Claim Rejected | HMRC removes your R&D tax relief from your CT600. You may be able to amend and resubmit. |
3. What to Do If HMRC Requests More Information?
HMRC may contact you for additional details before approving your claim.
Why Would HMRC Request More Information?
Your project descriptions lack technical detail.
The R&D expenditure breakdown is unclear.
There is a mismatch between the CT600 and the Additional Information Form.
How to Respond
✔ Act quickly – HMRC usually sets a deadline for responses.
✔ Provide clear, detailed answers with supporting documents (e.g., test results, development logs, invoices).
✔ If needed, consult an R&D tax specialist or accountant for assistance.
4. How to Handle an HMRC Compliance Check or Inquiry
If HMRC has concerns about your R&D claim, they may launch a compliance check or full inquiry.
4.1 What Happens in an HMRC Compliance Check?
A compliance check is not an automatic rejection but means HMRC wants to verify your claim. They may:
Ask for more technical details on your R&D work.
Request evidence of qualifying R&D expenditure.
Contact your R&D staff or financial team for explanations.
4.2 How to Respond to an HMRC Inquiry
✔ Provide a detailed response with supporting evidence.
✔ Submit any missing documents as soon as possible.
✔ Ensure your R&D claim is fully compliant with HMRC guidelines.
💡 Pro Tip: If HMRC raises concerns about multiple claims, they may audit previous years’ R&D claims, so make sure your records are always in order.
5. What If Your R&D Claim Is Rejected?
5.1 Common Reasons for Rejection
❌ Missing or vague project descriptions
❌ Submitting the CT600 before the Additional Information Form
❌ Claiming for ineligible R&D costs
❌ Exceeding the SME PAYE cap
5.2 Can You Resubmit a Rejected R&D Claim?
Yes, but only if your tax return deadline has not passed.
If the deadline has not passed:
✔ Correct the errors and resubmit the claim.
✔ Submit the revised Additional Information Form before the amended CT600.
If the deadline has passed:
❌ You cannot resubmit the claim, and you may lose the tax relief for that period.
6. Best Practices to Ensure a Smooth R&D Claim Process
Best Practice | Why It’s Important |
Submit the Additional Information Form before the CT600 | Avoid automatic claim rejection. |
Provide detailed and precise R&D project descriptions | Reduces the risk of HMRC inquiries. |
Keep detailed financial records | Ensures accurate reporting of qualifying expenditure. |
Cross-check all details with the CT600 | Prevents mismatches that could delay claims. |
Be prepared to respond quickly to HMRC requests | Helps resolve compliance checks faster. |
The HMRC Additional Information Form is now a mandatory part of the R&D tax relief process. By submitting a well-prepared, detailed, and accurate claim, businesses can avoid delays, compliance checks, or rejections.
Key Takeaways:
Always submit the Additional Information Form before or on the same day as your Company Tax Return (CT600).
Provide detailed technical descriptions of your R&D projects, focusing on scientific and technological uncertainties.
Keep accurate financial records to support your qualifying expenditure.
Respond promptly to any HMRC requests for more information.
If your claim is rejected, act quickly to correct errors and resubmit if possible.
By following these best practices, businesses can maximize their chances of securing R&D tax relief while staying fully compliant with HMRC regulations.
Summary of Key Points
The HMRC Additional Information Form is mandatory for all R&D tax relief claims and must be submitted before or on the same day as the Company Tax Return (CT600).
Claims will be automatically rejected if the Additional Information Form is missing or submitted after the CT600.
The form requires detailed project descriptions, including scientific or technological uncertainties and how they were addressed.
Vague, generic, or commercially focused descriptions are a common reason for claim rejections.
Businesses must ensure all financial details match those in the CT600, including qualifying R&D costs and accounting periods.
SME claims are subject to a PAYE cap, limiting the amount of R&D tax credit to three times the company’s PAYE and NIC liabilities plus £20,000.
Common mistakes include claiming ineligible expenses, submitting inaccurate financial figures, and misunderstanding SME vs. RDEC eligibility.
If HMRC requests additional information, companies must respond promptly with clear evidence to support their claim.
Compliance checks or inquiries may delay claims for months, so businesses should keep thorough records of R&D activities and costs.
If a claim is rejected, businesses can correct and resubmit it only if the tax return deadline has not passed.
FAQs
Q1: Can you submit the HMRC Additional Information Form in paper format?
No, the HMRC Additional Information Form must be submitted online through the official government portal. There is no paper submission option.
Q2: What happens if your company changes its accounting period while making an R&D claim?
If your accounting period changes, you may need to submit multiple Additional Information Forms—one for each separate period covered by your tax return.
Q3: Can you submit one Additional Information Form for multiple companies in a group?
No, each company within a group must submit its own separate Additional Information Form if they are making individual R&D tax relief claims.
Q4: Is there a way to track the status of your submitted Additional Information Form?
No, HMRC does not provide a tracking feature for R&D tax relief claims, but you will receive an email confirmation with a reference number once your form is submitted.
Q5: Can you amend an already submitted Additional Information Form?
No, once the Additional Information Form is submitted, it cannot be edited. If errors are found, you must contact HMRC to provide corrections or submit an amended CT600.
Q6: Does HMRC accept supporting documents along with the Additional Information Form?
Yes, you can submit additional supporting evidence, such as technical reports and financial breakdowns, separately via email or as part of your online tax return.
Q7: How do connected companies affect your R&D tax relief claim?
If your company is connected to another business, its total headcount and financial figures may affect whether you qualify for SME R&D relief or must claim under RDEC instead.
Q8: What happens if you miss the deadline for submitting the Additional Information Form?
If the form is not submitted before or on the same day as the CT600, HMRC will reject your R&D tax relief claim, and you may lose the opportunity to resubmit if the tax return deadline has passed.
Q9: Can an R&D claim be reviewed again after rejection?
Yes, if the tax return deadline has not passed, you can amend and resubmit your claim. If the deadline has passed, you may need to wait until the next accounting period to reapply.
Q10: Do you need to notify HMRC before making an R&D claim?
Yes, as of April 2023, first-time claimants and those who have not claimed in the past three years must submit an R&D claim notification form before filing their claim.
Q11: Can an R&D claim be submitted for projects carried out overseas?
Only certain overseas R&D costs qualify, and from April 2024, stricter rules apply, requiring a strong UK economic connection for most eligible claims.
Q12: Are software development projects automatically eligible for R&D tax relief?
No, software projects must demonstrate genuine technological advancements and overcome scientific or technical uncertainties to qualify.
Q13: Can you claim R&D tax relief for unsuccessful projects?
Yes, unsuccessful R&D projects still qualify as long as they aimed to resolve technological or scientific uncertainties.
Q14: How does the new R&D Intensive SME scheme affect claims?
From April 2023, SMEs spending at least 40% of total costs on R&D can access a higher rate of tax relief under the new R&D Intensive SME scheme.
Q15: Do R&D claims require a formal audit by HMRC?
Not all claims are audited, but HMRC may conduct compliance checks, especially for large claims or those missing clear project justifications.
Q16: What are the penalties for submitting incorrect R&D claims?
If an R&D claim is found to be inaccurate due to negligence or fraud, HMRC may impose penalties ranging from fines to criminal prosecution in severe cases.
Q17: Can an R&D claim be withdrawn after submission?
Yes, an R&D claim can be withdrawn before HMRC processes it, but this must be done by amending the Company Tax Return (CT600).
Q18: How does receiving a grant or subsidy impact an R&D tax relief claim?
Receiving state aid grants may disqualify certain projects from SME R&D relief, requiring claims to be made under the less generous RDEC scheme.
Q19: What should you do if you lose your Additional Information Form submission confirmation?
You should contact HMRC with your company details and UTR number to request confirmation of receipt.
Q20: Can you submit an Additional Information Form after an HMRC inquiry has started?
No, if HMRC has already opened an inquiry into your claim, submitting a new Additional Information Form will not change their review process.
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