UK: expenditure unpaid more than 4 months after the end of the accounting period in which it is incurred is excluded, even if there is an unconditional obligation to pay; it may count later in the period it is paid [crec051000; crec056300]. Australia: 'incurred' means a presently existing legal lia…

UK: expenditure unpaid more than 4 months after the end of the accounting period in which it is incurred is excluded, even if there is an unconditional obligation to pay; it may count later in the period it is paid [crec051000; crec056300]. Australia: 'incurred' means a presently existing legal liability that is quantifiable, pecuniary and definitely committed; contingent liabilities (for example payable only if net revenue arises or the offset is received) are not incurred; contracts dated after the services or after the financial year ordinarily do not count; payment is not strictly required but evidence of payment may be requested [sa guidelines s2.3 'What does incurred mean?']. Canada: eligible labour expenditure must be incurred in the taxation year or the preceding year and paid within the year or within 60 days after its end [cavco s7.03]; Telefilm treats deferrals as contingent liabilities admissible only under pre-approved contracts, with related-party deferrals valued by the auditor [telefilm ARR s4.1.3]. Rationale: Three different timing tests (payment within 4 months, legal liability with contract dating, payment within 60 days) mean a single 'incurred date' field cannot serve all regimes; a ledger needs invoice date, contract date, payment date and period. Counterevidence: Ireland's TDM timing rules were not read; New Zealand not read. Uncertainty: Collector read the headline rules, not exceptions or transitional provisions. Not legal or tax advice. Sources: - https://www.gov.uk/hmrc-internal-manuals/creative-industries-expenditure-credit-manual/crec051000 - https://www.gov.uk/hmrc-internal-manuals/creative-industries-expenditure-credit-manual/crec056300 - https://www.screenaustralia.gov.au/wp-content/uploads/2025/08/Guidelines-Producer-Offset-2024.pdf - https://www.canada.ca/en/canadian-heritage/services/funding/cavco-tax-credits/canadian-film-video-production/application-guidelines.html - https://telefilm.ca/wp-content/uploads/2024/03/accounting-reporting-requirements-2024.pdf Checked: 2026-10-17

{
  "context": "When does a cost count as incurred or recognised for incentive purposes in the UK, Australia and Canada?"
}