Key points
- HMRC’s view is that claims to R&D tax relief for staffing costs should be restricted to reflect periods of furlough.
- However this principle does not apply to holiday pay or sick pay relating to furlough periods.
- Claimants should consider making claims under the RDEC scheme where holiday or sick pay has been paid in respect of furlough periods and support was received under the CJRS.
- SMEs should consider the impact on their R&D claim before seeking support under the coronavirus statutory sick pay rebate scheme.
- Special consideration should be given to discretionary bonuses and overtime payments.
Claims by companies for research and development (R&D) tax relief both under the small and medium sized enterprises (SME) regime and under the R&D expenditure credit (RDEC) regime for larger businesses can only be made for qualifying costs. The most significant category of eligible costs is often staffing...