HMRC allow increased historic R&D tax relief claims

HMRC back down on employee expenses for R&D claims

Research and Development - White Word on Red Puzzles.

Until recently, HMRC did not allow reimbursed employee expenses to be included as part of qualifying staff costs for R&D claims.  HMRC has now issued updated guidance regarding this, revising their previously published position, to state that in certain circumstances these costs are allowable. This is particularly relevant in respect of reimbursed travel and subsistence costs.

Due to this change in guidance, HMRC has also opened up an arrangement for companies to make amendments to previously filed R&D claims that would normally be outside the dates of amendment.

In order to be eligible for an amendment to a previous claim to include eligible reimbursed employee costs, the claim must meet the following criteria:

  • The accounting period in which the claim was made ended between 9 October 2012 and 31 January 2016.
  • The original claim for that period was made on or after 9 October 2014.
  • The claim must be outside the normal time limits for amendments.

Amendments to claims that meet the above criteria must be made before 31 January 2018. Other claims that could still be amended within the normal 2 year window can also be changed in the usual way of filling an amended return.

Burgis & Bullock advise many companies on making R&D claims and would be happy to assist with any queries you may have in this area.  Please contact Anne Rose on 01926 451000, your usual B&B contact or use our on-line contact form.

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