HMRC have published further guidance in relation how the Coronavirus Job Retention Scheme (CJRS) will impact a company’s entitlement to claim R&D tax relief for periods where employees have been placed on furlough or flexi-furlough.
As furloughed employees will have been required to cease all work during the CJRS claim period, HMRC consider that those employees cannot be regarded as being directly or actively engaged in relevant research and development activities during those times. These costs will therefore need to be excluded from SME R&D and RDEC claims.
For those companies (year end after 28 February 2020) that have furloughed employees who are ordinarily involved within the company’s R&D activities, it is important to understand how their period of temporary leave from the business will impact on the company’s entitlement to claim R&D tax relief.
For more details on claiming R&D tax credits or advice tailored to your company, please contact PM+M’s R&D tax specialist, Jon Connor, using the button below.
This information is correct as of 22 September 2020. This blog is for general guidance only. Recipients should not act upon any of the information provided without seeking specific professional advice tailored to your circumstances, requirements or needs. Please contact PM+M before making any decisions based on any matters relating to this blog.