How to Prepare for HMRC’s New R&D Tax Relief Requirements in 2025

At Lumina by Ad Valorem, we understand the importance of staying compliant with HMRC’s evolving R&D tax relief requirements. HMRC has introduced significant reforms, tightening the processes and documentation necessary to support claims effectively.

What are the latest HMRC R&D tax relief requirements?

The ‘AIF’

For all claims submitted on/after 8 August 2023, HMRC made it compulsory to include an Additional Information Form (AIF). This must be submitted online before the claim itself and includes detailed company, agent, and project information.

• Company details (UTR, PAYE reference, VAT, SIC code)
• Senior officer’s name, email, and phone
• Main tax agent and R&D advisor details
• Accounting period covered by the claim
• A breakdown of expenditure per cost category and per project
• Descriptions of projects undertaken and their qualifying activities

Pre-notification

For accounting periods starting on or after 1 April 2023, HMRC now requires some companies to pre-notify them that a claim will be made.

This must be done if:

a. you’re claiming for the first time

b. your last claim was made more than 3 years before the last date of the ‘claim notification period’.

The claim notification period runs from the first day of the period of account and ends 6 months after the end of the period of account. If pre-notification is required, and the pre-notification window is missed, unfortunately it will not be possible for a claim to be made for that period.

What information do you need to collect for your claim?

To compile a robust claim, your records must include:

• Staff details: names, roles, activities performed, gross salaries, employer’s NIC, company pension contributions, time spent per project
• Subcontractors: company and individual names, activities, relationship to your business, costs applicable per project, invoices
• Externally Provided Workers (EPWs): similar details to subcontractors, including whether they are UK-based
• Software: suppliers, invoices, usage during R&D, and allocation to specific projects
• Consumables: suppliers, invoices, description of use, and confirmation the items were fully consumed or scrapped during R&D
• Competent professional(s) with the knowledge and experience to attest that projects meet the criteria to be qualifying R&D.

Why work with Lumina?

At Ad Valorem, we have a skilled, experienced team and our processes reflect HMRC’s increased scrutiny and seek to minimise enquiry risks. We guide you through gathering all the necessary data and ensure your claim remains robust and compliant.

Contact us today to ensure your company is fully prepared to meet HMRC’s R&D tax relief requirements.

FAQs

• What documents are required for an HMRC R&D tax relief claim? – You need company details, project descriptions, expenditure breakdowns, and evidence such as staff roles, subcontractor information, software, and consumables.
• Do I need to pre-notify HMRC of an R&D claim? – Yes, if it’s your first claim or your last claim was over three years ago. The notification must be made within six months of the period end.
• What is an Additional Information Form (AIF)? – It is a mandatory online form submitted before your R&D claim, providing detailed information about your company, projects, and costs.

Ready to prepare your next R&D claim? Let Lumina guide you through HMRC’s new requirements with confidence. Contact us today to get started.

(E) enquiries@advaloremgroup.uk (T) 01908 219100 (W) advaloremgroup.uk