What expenditure qualifies for R&D tax relief?
The range of costs associated with a qualifying R&D project that you can claim for is deliberately broad and includes expenditure such as:
- staff salaries, employer’s National Insurance Contributions, and pension contributions for staff working directly on the project as well as for administrative staff supporting it. You can also claim certain expenses such as project-related travel.
- subcontractors and freelancers engaged directly or indirectly in the R&D activity.
- materials and consumables including heat, light and power that are used up or transformed by the R&D process.
- prototype costs.
- some types of software.
Your R&D doesn’t have to be successful to qualify and you can, in some circumstances, include work undertaken for a client as well as your own projects.
Do you still have questions? Get in touch with our tax team to find out how they can help you.