Prior to 1st April 2012, a business needed to have spent a minimum of £10,000 on qualifying research and development (R&D) activities in order to submit an R&D tax credit claim.
This requirement meant that smaller businesses and startups that were just beginning to explore R&D projects were unable to claim tax credits and receive the financial support they needed. However, this is no longer the case.
2012 minimum expenditure policy change
A change in policy which came effective from 1st April 2012 removed the previous minimum expenditure requirement, meaning that no matter how much qualifying R&D expenditure you have, it’s possible to make an R&D tax credit claim. This opened up the opportunity for a wider range of businesses to take advantage of R&D tax credits.
The removal of the minimum expenditure threshold has been beneficial to businesses of all sizes, as it’s encouraged more companies to invest in R&D activities and seek out innovation opportunities. As a result, even businesses that are just starting out can now access R&D tax credits, which can help to offset their costs and provide a much-needed financial boost.
Eligibility criteria for claiming R&D tax credits
Although there is no minimum expenditure requirement to be able to claim R&D tax credits, there are other eligibility criteria a business must adhere to. For example, to make a claim, you must be (among other things):
- A UK company subject to Corporation Tax
- A going concern
- Undertaking qualifying activities and expenditures
Find out more about qualifying for R&D incentives >
We’ll help you identify all qualifying expenditure
With our team’s experience and knowledge in identifying qualifying R&D activities and expenses across diverse sectors and industries, you can trust us to help you create a comprehensive and robust claim.
With our assistance, you can be confident that you’ll go through a simple, hassle-free process to get the R&D tax credits you deserve. We liaise with your team to gain a thorough understanding of your processes and R&D activities and identify all expenditures that qualify for R&D tax credits. Furthermore, we can customise our approach to align with the unique operations of your company.
Get in touch with our team to kickstart your R&D tax credits claim.