It is important to carefully tie in the costs to the R&D project. We can help with the identification of allowable costs, making your claim process more efficient and robust.
The R&D expenditure included in an R&D tax claim will fall into certain specified categories, including:
- staff costs
- agency workers
General overheads (for example rent and rates) do not qualify.
A separate scheme is available for capital expenditure, giving an immediate 100% deduction in place of writing down the cost over several years. In some cases, such as buildings, the R&D capital allowance is an absolute benefit since no tax relief at all would otherwise be available.
Claims can be made within two years of the company’s year-end. Companies must therefore review their R&D activity frequently to make sure they do not miss out on their entitlement.