From 1 August 2023, companies will need to provide more detailed information when claiming research & development (R&D) tax relief.

New guidance from HMRC states that companies must complete an additional online form alongside their corporation tax return to support any R&D claims.

The form must be filed before the company's corporation tax return - otherwise, HMRC will remove the claim. Companies can also submit the form before 1 August if they want to provide more information.

When completing the form, companies must include contact details for the main senior R&D contact in the company and any agents involved in making the claim.

HMRC will also require businesses to provide details of qualifying expenditure and brief descriptions for each project explaining how it meets the requirements for R&D relief.

However, some professional bodies have voiced concerns about how this new process will work in practice.

The Institute of Chartered Accountants in England and Wales says that companies undertaking projects of a similar nature may face challenges in allocating costs between projects.

As a result, the additional form could result in "increased administrative costs" for compliant businesses.

Some members also questioned the process where the authorised tax agent and the R&D tax adviser are not the same.

Get in touch about your R&D tax credits.