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Qualifying Expenditure
Qualifying expenditure
Qualifying expenditure
Everything you need to know about qualifying R&D costs in one place
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Questions in this topic
To calculate staff costs for UK R&D claims, the business needs to determine the proportion of each employee’s time spent on qualifying R&D activities. This can be done by using a reasonable and supportable method, examples include: Timesheets Project tracking data Documented estimates from a…
Read the full answerEmployee wages: Salaries, wages, bonuses, employer National Insurance Contributions (NIC) and pension contributions of employees directly involved in qualifying R&D activities are generally eligible types of expenditure. This typically includes: Researchers Engineers Technical staff These types of employees if the project must have been actively…
Read the full answerThe short answer is yes. Who pays for the R&D, and who is responsible for it, can determine which company is entitled to claim R and D tax relief. For accounting periods beginning on or after 1 April 2024, most companies claim under the merged…
Read the full answerUsually, VAT cannot be included as part of an R&D tax relief claim. This is because businesses that are registered for VAT can normally recover it through their Value Added Tax returns. As a result, recoverable VAT is not generally treated as qualifying expenditure for…
Read the full answerEligibility for employee expenses should be assessed based on the work an individual undertook during the project, not their official job title. Software developers and engineers are some examples of staff who may have been directly involved in resolving scientific or technological uncertainty. Staff undertaking…
Read the full answerStaff from different areas of your business may be involved in R&D activity taking place. It is essential that staff who are involved in the project have their activity evaluated during the project, not just focusing on job titles. Employees who are not part of…
Read the full answerIn your R&D claim, you need to provide a reasonable explanation for how much time your staff spent on qualifying R&D activities. Staff costs can relate to activities that directly contribute to the resolution of scientific or technological uncertainty, as well as qualifying indirect activities…
Read the full answerExpenditure related to staffing costs during the furlough period cannot be included in your R&D tax relief claim. The primary reason for excluding this expenditure is that under the Coronavirus Job Retention Scheme (CJRS), furloughed employees were not permitted to carry out any work for…
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The outcome
Discover the outcomes of R&D tax credits to make informed decisions
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Not sure where your claim fits?
Answer a few questions and estimate whether your business may qualify for R&D tax relief.
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Our hassle-free and streamlined process is waiting for you to get started and to make you feel confident throughout your R&D claim application.
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R&D Tax Credit Calculator
R&D Tax Credit Calculator
Is your company registered in the UK?
Only UK companies paying Corporation Tax can claim R&D tax credits
Unfortunately, only UK-registered companies are eligible for R&D tax credits. If you are considering UK incorporation, we can advise you.
Is your company currently profitable?
This determines whether you receive tax relief or a cash credit
Estimated annual R&D spend
Include staff costs, materials, software, and subcontractors
£100,000
Annual R&D expenditure
Optional — leave as 0 if none
What industry are you in?
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Your estimated R&D tax credit
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- This amount is only an estimate — actual claim may vary*
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