What doesn’t count as R&D?

With the intention of R&D tax credits being to encourage new and exciting innovations in the UK, the replicated development of something that already exists will not qualify for R&D tax credits under HMRC’s definition of eligibility.

Understanding HMRC’s specific definition of science, means that advancements in the following fields will not be eligible for claiming R&D tax credits:

• Social sciences
• Arts and humanities
• Economics
• Pure mathematics

The following activities also do not fall under the criteria of qualifying research and development activities for claiming R&D tax credits:

• Routine analysis
• Adaptation of a product
• Complete copying of an existing product

Because of this, deciding whether a project qualifies for R&D tax relief can be challenging. Businesses must be able to clearly demonstrate that their work sought an advance in science or technology and involved technical uncertainty that could not be easily resolved using publicly available knowledge at the time.

This is where Alexander Clifford can assist you with your claim. Our strong understanding of HMRC guidance and eligibility criteria allows us to assess projects against the relevant standards and determine whether the R&D activities fall within the scope of the criteria of qualifying R&D.

Our team of industry specialists can also support businesses throughout the claims process, helping ensure that your claim is clearly documented and aligns with HMRC requirements. Clear explanations of the technical work undertaken and associated costs will help reduce the risk of delays or an HMRC enquiry. Click here to determine your eligibility.