There has been a slight change to the R&D guidance (CIRD83200) regarding cash reimbursement of expenses which we would like to highlight.
Previously reimbursed expenses were not eligible however this has now been amended and where the expense is incurred in actually carrying out duties of the job they are eligible. Examples are cited in the guidance and summarised below:
- Joe Bloggs undertakes qualifying R&D as part of work
- Joe Bloggs travels to another location to hold a meeting to discuss the findings of the research.
- Joe Bloggs pays the train fare of £10 which is subsequently refunded by the employer – This £10 constitutes an expense of the company of employing Joe Bloggs and the £10 payment is an allowable staffing cost of the company.
- Joe Bloggs hires a meeting room at £100 which is subsequently refunded by the employer – this is NOT allowable staff cost as is it not a cost of employing staff or relating to their performance or requirements of their job.
HMRC are allowing companies to amend their claims for accounting periods which ended between 9 October 2014 and 31 January 2016. Amendments must be received by 31 January 2018 in the form of revised corporation tax computation, supporting explanation and where possible a completed corporation tax self-assessment.