Restating accounts for an R&D tax relief claim

Do you need to restate accounts to claim R&D tax relief?

In most cases, no. R&D tax relief is claimed through your Corporation Tax return, not by re-filing statutory accounts. If you decide to claim after accounts have been filed at Companies House, it is normally dealt with via the CT600 (either in the original return or by amending it within the time limit), with the accounting impact picked up in the next set of financial statements.

For accounting periods after 1 April 2024, most claims are under the merged R&D tax relief scheme, with Enhanced R&D Intensive Support (ERIS) available for some R&D-intensive loss-making SMEs. That affects the nature of the benefit, but it does not change the basic point that the tax claim is made through Corporation Tax self assessment.  

Why you usually do not restate

Most companies file accounts with a current tax charge based on the best estimate at the time. If you later submit an R&D claim, the tax position changes, but that does not automatically mean the accounts were wrong. More often, it is a post-balance sheet development that is dealt with through the next reporting cycle.

This is why it is common to reflect the impact as a prior period adjustment or a tax provision true-up in the next accounts, rather than reopening a previously filed statutory set.

When a restatement might be needed

A restatement is usually only relevant where there was a material prior period error in the financial statements, not simply because you later made an R&D claim. Under FRS 102, material prior period errors are corrected retrospectively, with appropriate disclosure of the nature and impact.  

In practical terms, restatement is more likely to come up where accounts were materially misstated for reasons beyond R&D, or where the accounting treatment applied was not compliant with the applicable standard. This is an accounting judgement and often involves your accountant and auditors.

Prior period adjustment vs restatement

People often mix up these terms because both relate to correcting or updating previously reported figures, but they are not the same thing. A prior period adjustment is an accounting treatment within your next set of financial statements, used to correct a material error and explain the impact transparently. Restating previously filed accounts is a separate step that involves re-filing amended statutory accounts at Companies House, which is far less common and usually only considered in more serious situations. Getting the language right helps you choose the simplest compliant route and avoid unnecessary rework.

Prior period adjustment

A prior period adjustment is a correction made in later financial statements to reflect a material error or omission from a previous period, usually with restated comparative figures and additional disclosure where required under the reporting framework. FRS 102 sets specific disclosure expectations for material prior period errors.  

Restating previously filed accounts

This means filing amended statutory accounts at Companies House. That is much less common and usually reserved for situations where the previously filed accounts are not reliable because of a material error. Your accountant will normally advise whether this is necessary.

How the merged scheme and ERIS affect the accounts

Under the merged scheme, the benefit is structured as an expenditure credit that is taxable, similar in shape to the old RDEC approach. ERIS changes the amount of benefit for eligible R&D-intensive loss-making SMEs, but the mechanism still sits within Corporation Tax.  

The accounting presentation is a separate question from the tax claim itself. In many cases, companies recognise the credit above the line as other income (or as a reduction of R&D costs), depending on their accounting policy and auditor view. The key is consistency and clear disclosure, especially when the claim is finalised after accounts are approved.

What to do if your claim is finalised after accounts are filed

If the accounts are already filed, the practical steps usually look like this:

1. Prepare the R&D claim and ensure it is consistent with the period, projects, and qualifying costs.
2. Submit it through the CT600 (or amend the CT600 if you have already filed).
3. Agree with your accountant how the impact should be reflected in your next accounts, including any prior period adjustment or tax note disclosure.
   

If you are close to statutory deadlines, do not leave this until the last minute. The tax submission deadlines and the accounts process do not always line up neatly.