Share this content

'Out of Date' R&D Claim

'Out of Date' R&D Claim

Didn't find your answer?

Search AccountingWEB

We have a new client.

Period ended 30 June 2016

Accounts had been submitted to CH but HMRC never issued a tax return for some reason and one was never filed.

We called HMRC when we found out and confimred it was trading - HMRC duly issued a tax return and gave a deadline of a few weeks for submission.

The tax return included an R&D repayment and HMRC and now saying it is 'out of time' and not allowable. The time limit mirrors the tax return, but because they didnt issue one, surely this changes the deadline?

Does anyone have any experience of this or advice? 


Please login or register to join the discussion.

26th Mar 2019 14:59

I don't have any experience in this (as regards R&D claims) but I agree with your analysis.

The filing date for the return will be either 3 months from the date of the notice to file or, if the return was filed in absence of such a notice, the date of delivery - with a further 12 months to amend. As you say, the claim is included in the return - there is no separate time limit for R&D claims.

I think you need to ask HMRC for the specific legislative authority for their stance. (The legislation which says that they are wrong is paragraph 83E(1) of Schedule 18 to FA 1998.)

Thanks (1)
By ms998
to Wilson Philips
26th Mar 2019 14:53

Analysis is reliant upon HMRC formally extending the filing deadline by issuing a notice to file.

If HMRC have just allowed them to file late out of the kindness of their heart then they would be correct as filing date is unchanged.

Did HMRC originally issue a notice to file? If so you would have to argue it was in effective which may be difficult.

Thanks (0)
to ms998
26th Mar 2019 15:04

I agree - but since HMRC do not issue corporation tax returns ("HMRC never issued a tax return" and "HMRC duly issued a tax return") I assumed that those were references to a notice to deliver.

Questioner needs to check precise wording of HMRC's response when they "issued a tax return".

Thanks (0)
By TT123
26th Mar 2019 15:32

HMRC never issued anything in writing - we called and they gave us a deadline to file over the phone.

Thanks (0)
to TT123
26th Mar 2019 15:57

TT123 wrote:
- we called and they gave us a deadline to file over the phone.

That is quite different to "HMRC duly issued a tax return"!

What you are therefore relying on is proof that HMRC never issued a notice to deliver. Good luck.

Thanks (0)
Share this content