Changes to Corporation Tax Return for R&D claims

The CT600 has changed for R&D purposes.

Changes to Corporation Tax Return for R&D claims

HMRC have quietly introduced a new supplementary section for R&D claims, into the Corporation Tax return (CT600L). From April 2021, the new 4 page supplementary pages will need to be completed regardless of the accounting period.

This applies to both SME (small and medium-sized enterprise) and RDEC (R&D Expenditure Credit) schemes.

Why have HMRC introduced this new supplementary page?

The main reason is to reduce fraudulent R&D claims. As this can give companies attractive rates of relief, it is more open to being used dishonestly. With the introduction of the new supplementary pages, the hope is that this will speed up claims as the additional information you will be asked to provide should make R&D tax credits easier to calculate.

Is there anything else I need to do?

As is the case when providing anything to HMRC, it’s imperative that you keep detailed records to ensure you can provide accurate and truthful information when making your claim. Familiarise yourself with the information that will be required and if in doubt, consult a professional for advice.

Are there any other changes expected?

Yes, if you are claiming R&D you should also be aware of how this could be affected if you have also claimed Covid aid during the pandemic. More on this in our article – New information for individuals and businesses claiming for both R&D and Covid aid.

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