R&D tax relief amended claims time limit
R&D tax relief amended claims time limit
Mon 04 Sep 2017
HMRC has updated their guidance so as to remind corporate taxpayers of the time limit for submitting amended research and development (R&D) tax relief claims for reimbursed employee expenses, under the extended definition of staff costs contained in revised guidance issued in October 2016.
Businesses may submit amended claims where they relied originally on an HMRC guidance note issued in October 2014. In particular, HMRC notes that “Some companies may have understated their claims for reimbursed expenses as a result of a note which was read out at the Research and Development Consultative Committee on 8 October 2014.”
That earlier note indicated that travel and subsistence expenditure reimbursed to an employee did not qualify as a staffing cost for R&D tax relief purposes. The updated note of 16 October 2016 (see HMRC manual at Corporate Intangibles Research and Development Manual (CIRD) 83200) clarifies that there are circumstances where reimbursed travel and subsistence costs can qualify.
Companies have until 31 January 2018 to make an amended R&D claim for reimbursed expenses . Please get in touch with a member of the Mazars Corporate Tax team to discuss this or other corporation tax matters in more detail.
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