Can you amend your historic R&D claims for a recent change in HMRC policy for reimbursed expenses?

August 04, 2017

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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.