Ready for HMRC’s updated Additional Information Form (AIF)? Key updates for the Merged Scheme you need to know about!

Published: 18^th December, 2024

The introduction of HM Revenue & Customs’ (HMRC’s) Additional Information Form (AIF) marked a significant shift in the R&D tax landscape, and with the rollout of the Merged and enhanced R&D intensive support (ERIS) schemes from April 2024, the compliance bar has been raised yet again. As we approach the first financial year-end for these schemes on March 31 2025, it is crucial for you to proactively prepare clients for these changes.

Here is what you need to know to support your clients effectively.

What’s changed with the Merged Scheme?

For accounting periods starting on or after 1 April 2024, R&D tax claims fall under the new Merged RDEC and ERIS Schemes.

While the SME and RDEC schemes remain in force until 2026, claims under the Merged Scheme introduce additional complexities:

Subcontractor costs are now allowed for all claimants, including Large Companies and rules around subcontracted R&D have been tightened up and clarified
Overseas subcontractor and externally provided workers (EPW) costs are no longer claimable, with some exceptions
Grants and subsidies no longer affect claims
For Northern Irish companies, compliance with NI-specific ERIS requirements adds another layer of scrutiny
The AIF for these claims now demands significantly more detail, particularly regarding subcontractors, EPWs, and overseas activities

So, what are the key updates to the Additional Information Form (AIF)?

1. Enhanced subcontractor and EPW reporting

You must provide the registered country, PAYE references, and justification for any exemptions related to overseas activity restrictions.
The number of EPWs involved and their locations must also be explicitly detailed.

2. Specific details for Northern Ireland

For Northern Irish companies, the form requires a clear indication of compliance with NI ERIS rules, including previous claim values and adherence to the €300,000 benefit limit.

3. Cost splitting between schemes

Projects and costs must be allocated between RDEC and ERIS, ensuring clear separation and compliance with HMRC’s guidelines.

4. Mandatory business registration details

Company registration numbers, trading statuses, and whether work was conducted in the UK or overseas are now standard fields in the form.

Steps advisers should take now!

With the 31 March 2025 financial year-end on the horizon, it is vital to begin conversations with clients about their R&D tax claims for the new accounting period. Here are some practical steps:

Review claim processes – Ensure all project data is being collected in line with HMRC’s expanded requirements.
Clarify subcontractor and EPW information – Work closely with clients to gather precise data about workers and activities, particularly for overseas projects.
Assess eligibility for ERIS – Verify whether the company meets ERIS criteria, such as the 30 per cent R&D expenditure threshold, and confirm their eligibility status with supporting evidence.
Think about which scheme(s) to claim through – Work with your ERIS-eligible clients to determine whether they are better off claiming through ERIS, RDEC or both.

How WhisperClaims can help?

Navigating these changes might seem daunting, but WhisperClaims is here to make it manageable. Our R&D tax claims software has been updated to reflect HMRC’s latest requirements, guiding you through:

Collecting and structuring data for the AIF
Splitting costs and projects across schemes
Producing HMRC-compliant reports for submission
Providing expert advice line support for scheme eligibility queries

Not one, but two ebook guides for pre & post Merged Scheme AIFs

We have created two comprehensive ebook guides. Our current ebook provides a step-by-step walkthrough of the Additional Information Form (AIF) as it stands today, while our updated guide addresses the new requirements introduced for claims starting from 1 April 2024.

Whether you are preparing your first Additional Information Form (AIF) or adapting to the latest updates these resources will help you to ensure compliant and robust submissions. By understanding these changes and adapting processes now, you can help clients steer through the complexities of the Merged Scheme with confidence. Start planning today to ensure robust, compliant claims for the new financial year.

Download the guides here and stay ahead of the changes:

With WhisperClaims as your silent partner, you have access to in-person expert advice on scheme and eligibility questions, giving you the confidence to stay fully compliant with HMRC’s requirements, while delivering exceptional service to your clients.

Contact us today and book a demo of our software and find out how to implement efficient, effective and rigorous processes for R&D claim preparation.