Are you eligible to claim R&D tax credits?
At the simplest level, you need to have done two things to apply for R&D tax credits:
- To have carried out R&D projects
- To have spent money in the UK on R&D projects
Our expert team can help you determine R&D tax credit eligibility based on HMRC’s definitions of R&D activities and your R&D qualifying expenditures. We’re always just a phone call away, ready to guide you through the R&D claiming process with a No-Win, No-Fee policy, ensuring you don’t miss the opportunity for a financial boost for your business.
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What are R&D qualifying costs?
Staff PAYE costs/Pension contributions
Your company is eligible to request reimbursement for salaries, wages, class 1 NIC (National Insurance Contributions), and pension fund contributions paid to employees who are directly and actively involved in the R&D projects.
These costs pertain to payments made to an external agency for individuals directly and actively involved in the R&D project. These individuals are not employees or subcontractors but are engaged through the agency. Typically, relief is provided for 65% of the payments to the staff provider.
Materials and consumables
Your company is eligible to seek reimbursement for the expenses incurred on items that are directly used and consumed in qualifying R&D projects. These expenses cover materials, water, fuel, and power utilised in the R&D process.
The expenses related to operating systems, software platforms, and permissions granted for accessing and utilising digital data that is directly used in your R&D activities can be reimbursed. You may need to allocate the costs of partially used software appropriately to determine the eligible amount for the claim.
Certain travel expenses associated with your research and development may also be eligible for your claim. These costs include collaboration, attending relevant events, visiting research sites, or conducting fieldwork directly tied to your R&D projects.
Utilities such as water, gas, and oil can also be claimed as part of eligible costs. However, it is important to note that only the portion of utilities used exclusively for R&D purposes will be eligible, not the entire utility bills.