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Most people don’t like change. HMRC on the other hand absolutely do especially when it comes to government-backed incentives.
The recent Spring Budget confirmed a significant change for R&D claimant companies which now requires companies to complete the Additional Information Form or AIF prior to submitting a CT600.
This AIF is now compulsory for all claims submitted on or after the 8th of August 2023 regardless of claim dates or accounting period.
Ultimately this means providing certain information and details to HMRC in advance so that, presumably, they can get ahead of the curve in terms of identifying high risk or, worse, fraudulent claims.
With this key date fast approaching this represents another step to take in the process and we encourage companies to discuss the same with their accountant or R&D specialist.
We have spoken to a number of people in our network and a mutual concern that seems to be shared is the functionality of the AIF web portal which will probably not sync up easily to the Technical Justification Images for example, something that is supportive and crucial when explaining project complexities. It is feedback like this which insinuates that time and effort is needed when considering the new AIF requirements, specifically the syncing of information, so we are suggesting leaving plenty of time in advance to complete should there be an agreed filing date for the CT600.
It is vitally important to note that any R&D tax credit claim not accompanied by a completed AIF form will automatically be rejected by HMRC, which would be a nightmare scenario for any business operating on tight cashflows. R&D tax credit claims are already being subjected to lengthy delays and businesses need to plan carefully and be mindful of the new process, so not to give HMRC any more excuses for delaying or rejecting payment.
Joe Rayner who works alongside Buzz Capital comments:
“This is an important consideration for Buzz going forward especially when lending to borrowers in advance of their year-end. Usually Buzz and the borrower have an agreed filing date so borrowers now need to make sure that they make time for this somewhat inconvenient new step in their processes. There has been a lot of turmoil in the space over the past year or so and I do think HMRC could have done a better job at communicating changes, but here we are…”
Whether Buzz has previously facilitated you with an R&D loan in the past or not, we felt it was important to do our bit and communicate this upcoming change because anyone falling short of the new expectations will likely see their R&D claim disqualified by HMRC.
Even if only one reader was previously unaware of the imminent changes then it makes this blog worthwhile but, in the event that you were already well versed on the upcoming changes, we hope that this serves as a gentle reminder that Buzz can help boost your cashflow now by advancing funds against government back receivables such as your soon to be claimed R&D Tax Credit refund.
You can get your funds now with a short term and non-dilutive loan from Buzz Capital. We will be pleased to have a confidential, non-nonsense and straightforward discussion surrounding your cashflow requirements.
Apply for an R&D tax credit loan – it takes less than 5 minutes