By ‘consumable items’, this refers to straightforward physical expenses eligible for claiming. Claims are limited to goods utilised or changed during R&D activities. Consumables encompass straightforward items like water, fuel, and power, as well as transformable materials, including laboratory chemicals that are converted into usable products due to the R&D. The expenses must be utilised in any activity recognized as R&D for tax purposes, which also covers ‘qualifying indirect activities.’ This definition is applicable to both the SME scheme and the RDEC scheme, regardless of the company’s size, be it small or large.
If a chemical is recyclable, it would not be excluded from the claim. However, if a physical item remains usable in its original form after R&D, its cost cannot be claimed. The fact that the item is no longer new would not qualify as a transformation solely due to its use.