MPA Webcast Recap: How August 2023 R&D Tax Credit changes will impact your business

What are all the changes that come into effect from August 2023?

From the 8th of August 2023, you will need to complete and submit an additional information form to HMRC to support your Research and Development (R&D) Tax Credit claim. Unlike some of the other changes in April 2023, this change will be compulsory for all R&D Tax Credit claims, not just those new to claiming.

This week, MPA hosted their third educational webcast of 2023.

Find out what the expert panel covered: WATCH NOW

Key takeaways-

  1. The additional information form that needs to be submitted as part of your claim is compulsory for all claimants, regardless of whether you are a small or large SME/RDEC, and not just those who are submitting their first claim. The form is standardised and will be the same for every claim, and must be submitted before your file your corporation tax return.
  2. The information on your additional information form must match the information on your corporation tax return. If there are any discrepancies between the two forms, HMRC will reject your claim.
  3. You have 28 days from the day to start the additional information form to submit it.
  4. If you are submitting a claim for the first time, or if you have not submitted a claim within the past 3 years, you must submit an advance notification form, which MPA can help you to submit, and it must be submitted within 6 months past the year-end date.
  5. The number of projects you have to write up has changed. 1-3 projects: Write up all projects. 4-10+ projects: Write up a minimum of 3 projects, but cover at least 50% of the total cost of the claim. Example: If 3 projects equate to 30% of the total cost, you will be required to write up additional projects until 50% is hit.
  6. Tracking your costs and time throughout the year, and submitting your claim as soon as you can after your year-end, is the most efficient way of claiming. This should allow you to provide the most accurate representation of your projects, maximising the amount you can claim for, and generating money back into your business sooner.
  7. MPA have a tool to help you track your time and costs for your project(s). Your MPA representative will be able to talk to you in more detail about this and support you through your financial year to ensure the data is correct.
  8. Make sure your SIC code is up to date and accurately represents your business. Inaccurate SIC codes could result in your claim being rejected so it is important to make sure that your SIC code is correct. You can easily update your SIC code online, and you can have up to 4 codes for your business.

MPA have provided extra support regarding the additional information form on their blog post: Changes to R&D Tax Credits from August 2023 – Additional Information Form

For more information on the August R&D Tax Credit changes and to discuss the impact on your business- Contact the MPA Experts

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