AdditionalSubmit information youto mustsupport submityour before you claim for ResearchR&D andCorporation DevelopmentTax tax reliefreliefs

There

When may be other steps you must complete before you submit additional information. Check the steps you need to take to correctly claim R&D tax relief.

If you do not submit thisan additional information form, any R&D or expenditure credit claim will not be accepted. valid.

IfWe’ll this happens:

• we’ll write to you to confirm that we’ll remove your claim for R&D tax relief from your Company Tax Return
• Return. If this happens close to the last date for amending the returnreturn, ― you may not be able to make a valid R&D claim for that accounting period

Who can submit submit

You can complete the additional information form if you’re: you’re:

• a representative of the company company
• an agent acting on behalf of the company, using an agent services account 

If you’re an agent agent

You must log in to your agent services account before you can complete an additional information form on your client’s behalf. The company should give you their permission to complete the form for them. them.

Find out about registering with HMRC for an agent services account.

CompanyInclude company details toand include contact details

To complete the additional information form you’ll need the following details. details.

Company details details

Your company’s: company’s:

• Unique Taxpayer Reference (UTR), this must match the one shown in your Company Tax Return Return
• employer PAYE reference number number
• VAT registration number 
• business type, for example your current standard industrial classification (SIC)(SIC) code code

Contact details details

The contact details of: of:

• the main senior internal R&D contact in the company who is responsible for the R&D claim, for example a company director director
• allany agentsagent involved in the R&D claim

‘Any —agent includinginvolved anyin agentthe R&D claim’ includes:

• all agents who hashave givenprovided advice,advice analysedin costs,relation to any part of the R&D claim
• agents who have helped prepare all or parts of the claim, through technical assessments,assessment, givenor analysing costs
• agents who are involved in the claim, for example by:
  • providing information for or completedcompleting the online forms
  • filing orthe Company Tax Return

Accounting period start and end date date

You’llThe needaccounting theperiod start and end date of the accounting period for which you’re claiming.claiming the tax relief. This must match the dates shown in your Company Tax Return.

If

Include youR&D haveintensity madedetails

For anR&D electionexpenditure toincurred useon aor meanafter accounting1 date,April you2023

You mustcan useclaim thea meanhigher startrate of small and endmedium-sized datesenterprise of(SME) thescheme periodpayable ontax bothcredit if you meet the AdditionalR&D Informationintensity formcondition as a SME and theyour Companyaccounting Taxperiod Returnbegan forbefore the1 period.April If2024.

To meet the startintensity andcondition

Your endrelevant datesR&D onexpenditure both(plus submissionsthat doof notany match,companies theconnected Additionalwith Informationyou) Formmust will be rejectedat andleast the40% R&Dof reliefyour claimtotal inrelevant theexpenditure company(plus taxthat returnof willany becompanies removed.connected with you).

You’ll need to give details of your:

• relevant R&D intensityexpenditure
• total detailsrelevant toexpenditure
• connected include 

Youcompanies’ mayrelevant beR&D ableand tototal claimexpenditure

Connected acompanies

This higherincludes rateany ofcompanies smallconnected andto medium-sizedyou enterpriseon (SME)at schemeleast taxone creditday ifduring youthe meetaccounting period for which the R&Dclaim intensityis condition. made.

IfOnly youtrading meetcompanies thischargeable condition,to you’llUK needCorporation Tax (or companies eligible to giveclaim detailsrelief for pre-trading expenditure under section 1045 of your: 

• totalCorporation relevantTax costs 
• connectedAct companies’2009) relevantcan have relevant R&D expenditure.

  For andmore totalinformation costs 

• qualifyingon R&Dpre-trading expenditure 

Totalexpenditure, relevantread costs 

YouFor needmore toinformation includeon allconnection, ofread theHMRC costsmanual involvedCIRD82150.

Total inrelevant your project.

expenditure

This includes:

• costsexpenditure brought into account under generally accepted accounting practice (GAAP) to calculate trade profits, feeding into the profit (loss) before tax position in the profit and loss account or income statement in your GAAP accounts accounts
• if you’re pre-tradingpre-trading, ― any pre-trading costsexpenditure on which you’ll get relief under section 1045 of Corporation Tax Act 2009, read HMRC manual CIRD90200 
• any amount of capitalised capitalised R&D expenditure costs on which you’re taking a tax deduction under section 1308 of Corporation Tax Act 2009, read HMRC manual CIRD81450 

It does not include: include:

• any amount of amortisation you have to add back in your tax computations because you’re taking or have taken a sections1308 1308 deduction deduction
• costsexpenditure on payments or other transfers of value to a connected company company

Connected

For companies 

YouThe musthigher also14.5% includerate anyof companiescredit connectedis available under enhanced R&D intensive support, replacing the SME scheme for R&D intensive loss-making SMEs only. The intensity threshold drops from 40% to 30%.

You’ll also need to qualify as loss-making. This means that you onmust atmake leasta oneloss dayfor duringtax purposes before the accountingadditional perioddeduction for which the relief is taken. Unless you make such loss, you cannot claim covers. the additional deduction or the payable tax credit.

ForProfit-making moreand informationnon-R&D onintensive connectedSMEs companies,can readinstead HMRCclaim manualrelief CIRD82150.

Qualifyingunder the merged R&D expenditure expenditure credit scheme, if all other conditions are met.

Grace period

You mustmay includestill detailsbe ofable to claim enhanced support under the qualifyinggrace period, as long as in your last 12 month accounting period:

• you met the intensity condition
• you claimed SME relief or enhanced R&D costs.intensive Yousupport canon checkexpenditure whichincurred costson qualifyor dependingafter on1 theApril relief2023

Include you’requalifying claiming.

expenditure details

IfInclude yourdetails projectof meets the qualifying conditionsexpenditure — check the work qualifies for R&D, tax relief.

If you meet the conditions, in the Company Tax Return you can claim for: for:

• tax relief as a SME 
• expenditure credit as a large company or SME 

If you’re claiming for SME tax relief, you may be able to claim for:

• cloud computing costs, including storage, for accounting periods beginning on or after 1 April 2023
• consumable items, this could include materials, water, fuel and power
• data licence costs, for accounting periods beginning on or after 1 April 2023
• externally provided workers
• payments to participants of a clinical trial
• software
• staff
• subcontractor costs

If you’re claiming for expenditure credit, you may be able to claim for:

• cloud computing costs, including storage, for accounting periods beginning on or after 1 April 2023
• consumable items, this could include materials, water, fuel and power
• contributions to independent R&D costs
• data licence costs, for accounting periods beginning on or after 1 April 2023
• externally provided workers
• payments to participants of a clinical trial
• software
• staff
• some subcontractor costs

If you’re claiming SME tax relief and expenditure credit, you’ll need to provideprovide details details of the qualifying costsexpenditure for your tax relief and expenditure credit claims separately.separately. 

You must answer the PAYE cap questions for all SME claims relating to accounting periods beginning on or after 1 April 2021. 2021.

Only companies with an accounting period starting on or after 1 April 2023 have the option of submitting: submitting:

• the number of externally provided workers that have been involved in projects projects
• the employer’s PAYE references for all externally provided workers workers

This does not prevent companies from claiming costs for externally provided workers in accounting periods that started before 1 April 2023.

QualifyingInclude qualifying indirect activities activities

YouThese mustare include activities which form part of a project but do not directly contribute to the resolution of the scientific or technological uncertainty. uncertainty.

You can claim for the types of qualifying costsexpenditure detailed in the section ‘Qualifying expenditure details’, if they were incurred on the following qualifying indirect activities:

• scientific and technical information services, which are conducted for the purpose of R&D expenditure’support, sectionsuch as the preparation of thisthe guidanceoriginal ifreport theyof wereR&D incurredfindings
• indirect insupporting certainactivities qualifyingsuch indirectas maintenance, security, administration and clerical activities, finance and personnel activities, which are undertaken for R&D
• ancillary activities ―essential readto checkthe whatundertaking Researchof R&D, for example:
  • taking on and Developmentpaying (staff
  • leasing laboratories
  • maintaining R&D) costsequipment youincluding cancomputers claimused for moreR&D information.
    purposes
• training required to directly support an R&D project
• research by students and researchers carried out at universities
• research (including related data collection) to devise new scientific or technological testing, a survey or sampling methods, where this research is not R&D in its own right
• feasibility studies to inform the strategic direction of a specific R&D activity

ProjectProvide details toof include projects you’re claiming for

You need to give us details of the projects you’re claiming for in the accounting period. The details you need to give us depends on the number of projects that you’re claiming for.

If you’re claiming for 1 to 3 projects 

Allprojects, of the projects are relevant and you need to describe eachall onethe you’reprojects claiming for.

If you’re claiming for 4that tocover 10100% projects 

The company must select 3 or more projects to treat as relevant projects. Those projects must together account for at least half of the qualifying expenditure that you’re claiming. expenditure.

If you’re claiming for more4 than 10 projects

The companyor mustmore, selectyou 3need orto moredescribe projectsthe tolower treatof asthe relevantfollowing:

• the projects.number Thoseof projects mustthat together account for ata leastminimum halfof 50% of the qualifying expenditureexpenditure, thatbut you’reyou claiming.

  Butmust ifdescribe thea companyminimum wouldof have3 toprojects

• 10 selectprojects

If morethe thanqualifying 10expenditure projectsis tosplit accountacross formultiple atsmaller leastprojects, halfdescribe ofthe 10 with the most qualifying expenditure then(the itform shouldwill selectallow the 10you to include more projects withif theyou highestneed qualifying expenditure.to).

If you’re claiming both SME tax relief and expenditure credit 

You’llcredit, you’ll need to provide,provide separately, separately:

• details of the required number of projects based on the qualifying costsexpenditure for your:
  • your tax relief claim relief claim
  • details of the required number of projects based on the qualifying expenditure for your expenditure credit claim claim

  For example, if you have 8 SME projects and 2 R&D expenditure credit projects,projects then you’ll need to provide project details for:provide:

  • project details for SME projects accounting for at least 50% of the total qualifying costsexpenditure for SME relief, with a minimum of 3 projects described described
  • project details for both projects for which you are claiming R&D expenditure credit relief

  If you’re a large business customer

  For information on how HMRC deals with expenditure credit claims for large business customers, read HMRC manual CIRD80370.

  If you have any questions about the additional information form, you can contact the Large Business directorate using the relevant contact us email address, copying in your customer compliance manager (CCM).

  In addition, you can send us further supporting details about your R&D projects in a separate R&D report, this can include:

  • the claim methodology
  • use of sampling
  • details of the competent professionals

  You can submit the separate R&D report either:

  • by email, using one of the contact us email addresses
  • online, when you complete your Company Tax Return

  DescribingGive a description for each project of the projects

  The1. What is the main field of science or technology technology

  Provide a brief description of the field of science or technology that the project relates to. to.

  The following terminology will help you complete the description: description.

  • science

    Science ― is the systematic study of the nature and behaviour of the physical and material universeuniverse.

    Work (work in the arts, humanities and social sciences, including economics, is not science for this purpose) 

  • technology ― is the practical application of scientific principles or knowledge 
  purpose.

  From 1 April 2023,2023 mathematical advances in themselves are treated as science for these purposes, whether or not they are advances in representing the nature and behaviour of the physical and material universe. universe.

  Technology is the practical application of scientific principles or knowledge.

  The2. What was the baseline level of science or technology that the company planned to advance advance

  Describe the level of knowledge or capability that existed at the time the project started and which the company intended to advance.advance, Forfor example if the intention was to: to:

  • improve an existing material or devicedevice, ― describe what its existing features and capabilities were before the project began 
  • develop new knowledge in a particular area of science or technologytechnology, ― describe what was already known before the project began 

  The3. What advance in that scientific or technological knowledge thatdid the company aimsaim to achieve achieve

  Provide a description of the advance using the baseline level of science or technology in the companyprevious plannedanswer to advance as a comparison. comparison.

  The following information will help you complete the description. description.

  An advance in knowledge or capability in science or technology may have physical consequences or may be an increase in overall knowledge. In either case, a competent professional working in that field would recognise theit advance as an significant appreciable improvement. improvement.

  The improvements may include: include:

  • creating a process, material, device, product or service that increases overall knowledge or capability in a field of science or technology technology
  • significantlyappreciably improving an existing process, material, device, product or serviceservice, ― for example to save costs or reduce waste (this refers to genuine non-trivial improvements which result in more than a minor or routine upgrade) upgrade)
  • using science or technology to copy the effect of a current process, material, device, product or service in a new or improved way

  4. The scientific or technological uncertainties that the company faced faced

  You must include only scientific or technological uncertainties, for example, the company: company:

  • does not know if it is possible to create or improve the product or process process
  • cannot readily workdeduce out how to create or improve the product or processprocess, based on what they already know ― for example you tried to build a medical diagnostic tool combining non-invasive testing technology, artificial intelligence (AI) and portability, but you’re not sure about the method to do this this

  Your description of the uncertainties should explain: explain:

  • what is stopping you from achieving the advance in scientific or technological knowledge (a problem is not an uncertainty if it can be resolved in a discussion with peers) peers)
  • why it is it a technological or scientific uncertainty for the industry, not just your company company
  • if a competent professional working in the field would be uncertain as to how to achieve the advance, and explain why

  5. How did your project seeksseek to overcome these uncertainties uncertainties

  Provide more details about the direct R&D activities usedthat to try andto resolve the scientific or technological uncertainties, andas thewell as qualifying indirect activities. activities.

  Describe the information in sufficient detail to tell us: us:

  • how the R&D project was not straightforward straightforward
  • the methods planned or used to overcome the uncertainty uncertainty
  • if the uncertainties were resolvedresolved, andif howyes orhow, whyand you’veif beenno unablewhy to resolve them not

  Activities which directly contribute to R&D may include: include:

  • creating or adapting software, materials or equipment needed to resolve the uncertainty uncertainty
  • planning activities such as a detailed plan of how you’ll carry out the project project
  • designing, testing and analysis to resolve the scientific or technological uncertainty uncertainty

  Include the qualifying costsexpenditure incurredfor oneach qualifyingproject for indirect activities forthat eachdo project.not Checkdirectly guidancelead onto whichresolving R&Dthe costsuncertainty. youA can claim for a list of what shouldmay be included.

  Theincluded taxcan reliefbe you’refound claimingin and the amount 

  section ‘qualifying indirect activities’.

  Tell

  6. usWhich whattax relief you’re claiming for and what amount of the qualifying costs applies to each project.

  If you want to send us more information amount

  InTell addition, you can send us furtherwhat supportingyou’re detailsclaiming aboutfor, yourfor example R&D projectstax inrelief, aexpenditure separatecredit, R&Dor report,both, thisand canwhat include: 

  • theamount claim methodology 
  • use of sampling 
  • details of the competentqualifying professionals 

  Youexpenditure canapplies submitto theeach separatespecific R&D report either: project.

  • by

    Submit email, using one of the contact us email addresses 

  • online, when you complete your Company Tax Return 

  Large business customers form

  ForOnline informationservices onmay howbe HMRCslow dealsduring withbusy expendituretimes. creditCheck claimsif forthere largeare businessany customers,problems readwith HMRCthis manual CIRD80370service. .

  IfYou you have any questions about the additional information form, you can contactsubmit the Largeform Businessif Directorate. You should use the relevant contact us email address and copy in your customer compliance manager (CCM).you’re:

  Before you start

  If you’re: 

  • a representative of the company — you’ll need the Government Gateway user ID and password you used when you registered for for Corporation Tax, if you do not have a user ID, you can create one the first time you sign in in
  • an agent — you’ll need the Government Gateway user ID and password you used when you registered for the the agent services account, if you do not have a user ID, you can create one the first time you sign in in

  You will not be able to access the form once it’s been submitted, so save a copy before you submit it. it.

  If you do not have a Government Gateway account, make sure you register for one in good time to receive the details you need to submit your additional information form. form.

  Each company in the group needs its own Government Gateway account to submit an additional form. You cannot use a ‘Group Tax Manager’ account.

  Submit the form

  Online services may be slow during busy times. Check if there are any problems with this service. 

  Start now

  What you need to do next 

  You’ll then get an email to confirm that we’ve received the form. This email will contain a reference number. number.

  Keep a note of this reference number so that: that:

  • you can discuss your additional information form with HMRC HMRC
  • if we need to, we can check that you’ve submitted your additional information form form

  How to claim

  YouIf canyou thendecide maketo continue with your claim:

  • check if you need to tell HMRC that you’re planning to claim forResearch and Development (R&D) tax relief for accounting periods beginning on or after 1 April 2023
  • if you do need to submit a claim notification form, put an ‘X’ in box 656 of the Company Tax Return CT600 to tell us that you have submitted it
  • put an ‘X’ in box 657 of the Company Tax Return CT600 to tell us that you’ve submitted the additional information form
  • complete the computations for the relevant accounting period
  • complete and send us the supplementary form CT600L if you’re claiming payable credit or expenditure credit

  Read more information on how to complete the Company Tax Return.

  We are aware of a problem with completing boxes 655 and 657 on form CT600. Changes and issues affecting the Corporation Tax online service explains what action you should take while we resolve this problem.