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What Can I Include In An R&D Tax Claim?

Once the scope of eligible activity has been determined, attention can turn to calculating the qualifying costs incurred during the activity and to quantifying the relief available. Qualifying costs may relate to two main types of eligible activity: 

R&D TAX RELIEF - DIRECT QUALIFYING

 

 

Activities directly needed in the attempt to resolve scientific or technological uncertainty

R&D TAX RELIEF - INDIRECT QUALIFYING

 

 

Activities without which eligible R&D effort could not take place, creating the context for R&D

A claim for relief should cover both direct and indirect activities, and care must be taken to ensure that costs relating to this work are calculated correctly. As is usual with reliefs arising from the UK R&D tax regime, there are a number of complex rules that must be considered, and not all costs incurred in relation to eligible activity are "qualifying". The legislation specifies certain categories of expenditure that can be claimed ("qualifying costs") and you can carry out an initial assessment of the likely level of qualifying spend for your business by clicking on the button below. 
 

Are you incurring any of these expenses? 

Staffing costs such as salaries, bonuses employers’ NI and pension contributions

Payments to staff controllers such as agencies and other third parties supplying manpower

Consumable items not sold onwards to customers and utilities (water, fuel and power) used in the R&D

Computer software   required for the R&D, including development and general tools

Sub-contracted R&D, where you are paying a third party for a package of work

If you answered YES here you have qualifying expenditure 

For many organisations, working out the costs associated with R&D activity can be challenging. However, any approach that is demonstrably fair and conservative, and backed by the technical experts in the company, can be acceptable to HMRC and we have developed robust and successful approaches that allow claims to be made at project, role, team or individual level.