R&D Overseas Expenditure
When inputting R&D figures for a period of account longer than 12 months (i.e. where 2x corporation tax returns are needed), we are unable to put specific R&D expenditures in a specific corporation tax periods. This is an issue with overseas workers where the periods are pre and post 1 April 2024, and where expenditure is only eligible in one of the periods. As currently, the expenditure is pro-rated, this means that non-qualifying expenditure is being brought into one of the periods.
Is it possible to create a feature which allows for the expenditure to be split correctly between the two periods? I imagine this would work similarly to the R&D tax credit rate change from 1 April 2023, which allowed for the expenditures to be split when the corporation tax period straddled 1 April 2023.
Jemma Mason
shared this idea
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Jemma Mason
commented
When inputting R&D figures for a period of longer than 12 months (i.e. where 2x corporation tax returns are needed), we are currently unable to put specific R&D expenditures in a specific corporation tax period. This is specifically an issue for where we have overseas workers and the second period starts after 1 April 2024 and where there are multiple projects and one or more started in the second period. Therefore, this means that expenditure is being brought into the claim period where it is non-qualifying.
Would it be possible to have a feature which would allow us to separate the expenditure per period as opposed to pro-rating it? I imagine this would work similarly to the R&D tax credit rate change from 1 April 2023 which allowed us to split the expenditure where the corporate tax period straddled 1 April 2023.