The updates relate to an extension of the ordinary filing deadline following a change in HMRC interpretation around reimbursement of expenses.
As mentioned in last week’s Tax Matters Digest, HMRC’s Corporate Intangibles and Research and Development (CIRD) manual has been updated to reflect a temporary extension to the available period in which to amend an R&D claim. The extension relates only to businesses which have previously restricted ‘reimbursed expenses’ as part of qualifying staff costs as a result of an HMRC R&D Consultative Committee note that stated that these expenses could not be claimed. HMRC subsequently clarified their interpretation to include out of pocket expenses, such as travel and subsistence that are initially borne by the employee and incurred in order to fulfil their (R&D) employment duties, within the definition of qualifying staffing costs. The updated guidance now allows companies who excluded these amounts from their original claims to go back and amend their claims outside of the statutory filing deadline.
To be eligible to be amended under the revised guidance, the claim must:
Claims must be made by 31 January 2018.
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