Can you amend your historic R&D claims for a recent change in HMRC policy for reimbursed expenses?
04 August 2017
Qualifying costs for Research & Development (R&D) claims include employee salaries, NICs etc. for personnel undertaking R&D. The inclusion of reimbursed expenses for travel, mileage etc. has historically been uncertain, but HMRC has now confirmed that such costs can qualify, changing its position.
There is a limited window between now and 31 January 2018 for companies to amend prior year (R&D) claims (outside of the normal time limits) to include reimbursed expenses. HMRC has confirmed that retrospective amendments to R&D claims may be made to include reimbursed expenses where companies have previously excluded these costs as a result of incorrect guidance published by HMRC on the 8 October 2014.
This opportunity applies to R&D claims for accounting periods ending between 9 October 2012 and 31 January 2016, if the original R&D claim for that period was made on or after 9 October 2014.
- We are working with a number of companies to enhance their existing R&D claims for reimbursed expenses, as well as other missed qualifying costs both SMEs and large company claimants. One such company has identified over £1m of potential costs - giving c.£100k of benefit to them.
The deadline by which retrospective claims must be received by HMRC is 31 January 2018 so one to look at sooner rather than later perhaps.