If your company invests in research and development, you could be eligible for R&D tax credits. Answer a few quick questions to find out if your research and development expenditure could qualify for R&D tax credits.
R&D Tax Credits Eligibility FAQs
What is eligible expenditure?
For eligible projects, it is the money spent on salaries, externally provided workers, subcontractors, software, utilities and materials ‘consumed or transformed’, such as such as chemicals, materials, batteries and certain forms of tooling.
My Accountant said I am not eligible for R&D tax credits. Is there anything else I can do?
Can you work with my accountant?
Yes – we have worked with many Accountants over the years. Contact us to find out how we can work together.
Working together with accountants, we find and maximise the eligibility while accountants utilise its tax benefit. We always complement rather than compete.
How does sub-contracting affect an R&D Tax relief claim?
Subcontracting can be a tricky situation in an R&D tax credit claim, but it doesn’t necessarily mean you can’t claim. You need to be very sure about your contractual situation, the work you are contracted to do and who is bearing the brunt of the cost, as all these can have an effect on the eligibility of subcontracted work.
What percentage of sub-contractor payments can be claimed?
Under the SME scheme, 65% of payments to sub-contractors can be claimed except if the SME is connected to the sub-contractor (e.g. is its parent, part of the same group, or are under common control). The rules are different for connected sub-contractors.
Does the sub-contractor have to be in the UK?
No. There is no requirement that the sub-contractor should be in the UK. However, it is important that the sub-contractor is engaged to perform a specific task rather than providing a service.
Can I claim for R&D even though I’m loss making?
Yes! The crucial thing is that companies have to be spending money, and the more they have spent on eligible activities, the greater the benefit and some loss-making companies may be eligible to receive a cash credit.