More detailed information is now required for R&D
A business that invests in innovation and develops new processes, products, or services may benefit from research and development (R&D) tax relief. To make informed financial projections, you will need to understand exactly how the R&D tax relief regime works after April 2023 and April 2024.
Research and development (R&D) tax relief will require companies to provide more details from 1 August 2023.
HMRC has issued guidance stating that companies must submit an additional online form along with their corporation tax return to support their R&D claims.
HMRC will remove the claim if the form is not submitted before the company's corporation tax return. The form can also be submitted by companies before 1 August if they would like more information.
A company's main R&D contact and any agents involved in making the claim must be listed on the claim form.
A short description explaining how each project meets the requirements for R&D relief will also be required by HMRC.
This new process has raised concerns among some professional bodies.
According to the Institute of Chartered Accountants in England and Wales, companies undertaking similar projects may have difficulty allocating costs among them.
Compliant businesses may experience "increased administrative costs" due to the additional form.
Furthermore, some members questioned the difference between the authorised tax agent and the R&D tax adviser.
Zyla Accountants will be able to help you with your claim, for more information and case studies go here.