HMRC accept changes to R & D claims

HMRC recently announced a deadline for accepting amended claims for Research and Development (R&D) tax credits. This specific opportunity relates to claims to include eligible reimbursed employee expenses as part of qualifying staff costs. Only staffing costs of directors or employees directly and actively engaged in the relevant R&D can be considered.

This opportunity only applies to accounting periods which ended between 9 October 2014 and 31 January 2016. After that date, new legislation closed the opportunity to claim for reimbursed employee expenses. HMRC published guidance on making a claim on 8 October 2014 and issued revised guidance on 27 October 2016 which clarified HMRC’s interpretation of the law. In the newer guidance, HMRC advised that retrospective claims to include reimbursed employee expenses could be made where claims had been restricted based on HMRC’s earlier guidance.

In general, R&D tax relief can be used by companies that are developing new or improved systems, processes, services or products in the areas of technology or science. The R&D project in question must relate to the company’s trade and can be used by existing companies or by new start-ups.

Planning note:

HMRC has recently published confirmation that the revised deadline for submitting an amended claim to include employee expenses is 31 January 2018.

If you feel that you qualify please call so that we can advise you further.

Posted in Corporation Tax

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