Are we eligible to make a R&D tax credit claim if we were subcontracted by a third party?

If an SME is subcontracted to participate in a research and development project, they can only claim R&D tax credits if they are subcontracted by a large company.

This means that under the SME tax credit scheme, SMEs that have been subcontracted by other SMEs cannot make a claim themselves. 

If a large company is subcontracted to participate in a research and development project, they can claim R&D tax credits under the RDEC scheme, regardless of the size of the company that subcontracted them.

If a company’s accounting period falls on or after April 1st 2024, they automatically fall under the new R&D tax credit scheme. The new scheme maintains that SMEs that have been subcontracted for a research and development project can only make an R&D tax credit claim for that project if they are subcontracted by a large company.