Fergus WatsonR&D Senior Financial Consultant

Having started out at one of the Big Four accountancy practices for several years, Fergus has extensive experience with R&D tax claims.

It is not necessary to restate (or re-file with amendments) previous accounts to claim research and development (R&D) tax credits.

When it comes to R&D tax credits, we find it is more common to include a prior-year adjustment in the following period’s accounts. It is, however, worth noting that there are some subtle differences in the accounting treatments for SME R&D tax credits and large company (RDEC) claims.

How often are you required to restate your accounts?

It is quite rare to restate your accounts for R&D tax credits; this is only necessary when your accounts do not comply with the Companies Act. And the Corporation Tax shown in your accounts is a provision, therefore any subsequent change to your liability generally does not require your accounts to be re-stated.

This is why it is much more common for companies, or their accountants, to include a prior-year adjustment in their next year’s accounts.