Can I obtain tax relief on capitalised R&D expenditure?

Clients often ask about machinery purchased for use in R&D qualifying projects and whether the costs can be recovered through the R&D tax credit scheme. Unfortunately, ‘capital expenditure’ doesn’t attract the higher level of enhanced relief for your R&D efforts in the same way as ‘revenue expenditure’ i.e. costs incurred for employees, subcontractors, agency staff, … Continue reading “Can I obtain tax relief on capitalised R&D expenditure?”

The impact of ‘Connected Party’ relationships for R&D Tax Relief

When claiming R&D qualifying expenditure in respect of subcontractors and externally provided workers (EPW’s), special rules apply where there is a connection between the R&D claimant company and the subcontractor or the EPW provider. There are several ways in which connection may occur; some may be through family relationships, others through common ownership and control. … Continue reading “The impact of ‘Connected Party’ relationships for R&D Tax Relief”

Differentiating between Subcontractors & EPW’s for R&D Tax Relief

We often come across situations where there is R&D being performed by persons other than those employed by the claimant company conducting qualifying activity. The reasons for this are varied; however, these are some of the most common scenarios: the claimant company does not have the specialist equipment or expertise required to conduct some of … Continue reading “Differentiating between Subcontractors & EPW’s for R&D Tax Relief”

What Reimbursed Expenses qualify for R&D Tax Relief?

Did you know that HMRC recently relaxed the rules regarding the recovery of expenses incurred by staff in the course of undertaking compliant activity? Pre-existing legislation meant that staffing costs recognised as qualifying for R&D Tax Credits were limited to; Salaries or wages (including bonuses) Class 1 national insurance contributions Pension fund contributions operated for … Continue reading “What Reimbursed Expenses qualify for R&D Tax Relief?”

What type of ‘consumable items’ qualify for R&D Tax Relief?

General The term ‘consumable items’ covers items consumed or transformed whilst undertaking compliant R&D activity, including raw materials, software licenses and utilities of any kind. The fundamental arbiter is that the items are fully utilised within the project, at the end of which they are no longer useable in their original form because they are … Continue reading “What type of ‘consumable items’ qualify for R&D Tax Relief?”