What doesn’t count as R&D?
As the idea behind R&D tax credits is to encourage new and exciting innovations, the carbon copy development of something that already exists will not qualify as R&D under the HMRC’s definition.
It’s important to note that HMRC has a specific definition of science, which means that advancements in the following fields will not qualify for R&D tax credits:
- Social sciences
- Arts and humanities
- Economics
- Pure mathematics
In addition, the following activities do not fall under the definition of qualifying research and development activities for R&D tax credits:
- Routine analysis
- Adaptation of a product
- Complete copying of an existing product
For these reasons, defining whether a project qualifies for R&D tax credits can be difficult. This is where Alexander Clifford can help, because our expertise in HMRC policy and guidelines allows us to easily understand what qualifies.
Furthermore, our team is able to aid qualifying businesses throughout their claims process, to ensure that the claim aligns with HMRC standards. Click here to determine your eligibility.
