Tag RDTR / RDEC / SMEIT Incentives: New information requirements effective 02 October 2024.

New information requirements for the electronic filing of RD relief incentives were formalised in the publication of SI / 2024 / 950  on 11 September. These consolidate the initial ‘Additional Information’ requirements first outlined in Finance Bill 2023 (Autumn)^[1] providing HMRC with protection from erroneous or fraudulent claims. The Regulations cover claims within:

• The ’old’ RDTR SME schemes;
• The ‘old’ RDEC scheme;
• The ‘universal’ RDTR scheme; and
• The ‘new’ SME Intensive scheme.

In brief as we know, relief incentive claims must comply with the digital ‘AIF’ specification detailing contact and agent details; the company particulars;  its RD operations and the calculation of eligible costs & relevant scheme(s) concerned for the accounting period.
The new regulations also provide for

• Demonstration / quantification of an SME’s ‘RD Intensity’ by reference to its accounting data for the period of claim.
• The introduction of defined subcontractor cost analysis.
• Identification of the company’s business, satisfying the ‘relevant’ RD test.
• The electronic delivery of claim notifications under the Chapter 2 regulations, supplementing the FA 1998^[2] originating legislation by prescribing the delivery of data on the company’s tax return together with ‘associated RD information’.

The Regulations take effect on 2 October 2024 for companies registered in Engalnd & Wales and Northern Ireland.

They can be viewed here, and give effect to part of the consolidated 2023 reforms for RD
relief incentives: https://shorturl.at/XAYeP

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^[1]https://www.gov.uk/government/publications/research-development-rd-tax-relief-reforms
^[2] See paragraph 83WA of Schedule 18 to the Finance Act 1998