R&D Funding
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Learn which costs qualify for R&D tax relief, from staffing and consumables to software and subcontracted work, helping you capture the full value of your innovation investment.
Can R&D costs be capitalised?
How you handle R&D costs can impact your financial health. Capitalising costs means treating them as assets on the balance sheet rather than immediate expenses. This spreads costs over time, reflects the long-term value of projects, and provides a clearer view of performance, balance sheet strength, and cash flow while ensuring compliance with accounting standards.
R&D tax expenditure thresholds and restrictions
Not all R&D costs qualify for tax relief. Expenditure on routine production, market research, or non-technical training is excluded, while only directly related staffing, consumables, software, and subcontractor costs count. Understanding these limits ensures claims include only eligible costs and remain compliant with HMRC rules.
Navigating subcontractor costs
Subcontractor costs can be included in R&D tax claims if they relate to eligible R&D activities. The rules differ between SME and RDEC schemes, affecting the level of relief available. Properly documenting agreements and expenditure is essential to support a compliant and high value claim.
Reimbursed expenses in R&D claims
Reimbursed expenses can be included in an R&D tax claim if they qualify as staffing costs. To count, they must be incurred by the employee, relate directly to R&D activities, and be necessary for their role. Travel to work or training costs do not qualify, so careful assessment ensures only eligible expenses are claimed.
Can R&D costs be capitalised?
<p>How you handle R&D costs can impact your financial health. Capitalising costs means treating them as assets on the balance sheet rather than immediate expenses. This spreads costs over time, reflects the long-term value of projects, and provides a clearer view of performance, balance sheet strength, and cash flow while ensuring compliance with accounting standards.</p>
R&D tax expenditure thresholds and restrictions
<p>Not all R&D costs qualify for tax relief. Expenditure on routine production, market research, or non-technical training is excluded, while only directly related staffing, consumables, software, and subcontractor costs count. Understanding these limits ensures claims include only eligible costs and remain compliant with HMRC rules.</p>
Navigating subcontractor costs
<p>Subcontractor costs can be included in R&D tax claims if they relate to eligible R&D activities. The rules differ between SME and RDEC schemes, affecting the level of relief available. Properly documenting agreements and expenditure is essential to support a compliant and high value claim.</p>
Reimbursed expenses in R&D claims
<p>Reimbursed expenses can be included in an R&D tax claim if they qualify as staffing costs. To count, they must be incurred by the employee, relate directly to R&D activities, and be necessary for their role. Travel to work or training costs do not qualify, so careful assessment ensures only eligible expenses are claimed.</p>
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Our resources are designed to guide your R&D claim journey, while our expertise turns insight into real results.
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