Watch out for subcontracting gremlins!
If you are using subcontractors, they must be engaged to perform a specific task, rather than providing a service, as contracts to provide a service are exempt from R&D tax relief. Carrying out sub-contracted work on behalf of a client is a little trickier and would normally only be eligible if the client is a large company, meaning the costs would need to use the (less financially advantageous) Large Company RDEC scheme enhancement rate. However, where the work is deemed to be emergent R&D, rather than development work explicit in the contract, a claim may be made under the SME scheme. Getting this wrong can have serious implications to the value and robustness of your claim.
