What counts as R&D?
HMRC define R&D as taking place “when a project seeks to achieve an advance in science or technology.” Qualifying work doesn’t just include “white coat” scientific research, it can include:
- Creating new products, processes or services
- Changing or modifying an existing product, process or service.
For instance, software development, engineering design, construction techniques, cleantech etc. It’s important to note that pure product development itself does not qualify.
What costs qualify?
- Direct and external staff
- Subcontracted R&D
- Independent research costs
The following do not qualify:
- Capital expenditure
- Production and distribution of goods and services
- Cost of land
- Payments for the use and creation of patents and trademarks
What is the process?
- Initial Assessment – We will have a meeting with you to gather the information and discuss your claim.
- Report – We will go away, analyse the data and put together a report. We will leave no stone unturned to ensure the maximum possible claim
- Review – We will meet with you to make sure you are happy with the report and claim before submission
- Submission – We will submit the report along with your CT600 (Corporation Tax Return) and liaise with HMRC on your behalf
- Success – It usually takes 4-6 weeks for HMRC to process the claim. You will either receive a credit against your tax bill or a repayment directly to you. We will only charge you for a successful claim!