What Projects Count as R&D?

Gary Green
Gary Green
September 17, 2019

According to HMRC, work that advances overall knowledge or capability in a field of science or technology, and projects and activities that help resolve scientific or technological uncertainties, may qualify for R&D relief.

Whether a business qualifies for R&D relief is complex. Many businesses, especially smaller ones, believe that their project will not qualify. However, for many businesses, the surprising answer is that your project could qualify for relief and substantial tax benefits.

Do I Qualify?

To qualify the company must be carrying out research and development work in the field of science or technology. The relief is not just for ‘white coat’ scientific research but also for ‘brown coat’ development work in design and engineering that involves overcoming difficult technological problems.

In a nutshell, this means that any company working on a project to resolve some type of uncertainty that advances science or technology may qualify for R&D tax relief. This is an important rule to remember.

The company must be able to demonstrate that they worked to solve an issue and somehow advanced the overall knowledge in their field/industry. This can include creating

  • New processes,
  • Products or services,
  • Making appreciable improvements to existing ones and
  • Even using science and technology to duplicate existing processes, products and services in a new way.

Advanced Assurance

Despite all the HMRC guidance, the rules are complex. Whether or not a project qualifies is often open to interpretation. We have seen cases where projects have qualified in the past but then no longer qualify and vice-versa.

How an R&D claim is put together and explained to HMRC can also have an impact. Small companies can also apply for advance assurance from HMRC that a project will qualify before incurring any expenditure.

Interestingly even if a project ultimately fails, the mere fact it was doing R&D may be enough to qualify for tax relief. It is also important to ensure R&D relief is maximised by claiming for all allowable costs on qualifying projects.

Contact us to find out more.

Interested in our services?
Fill in your details and a member of our experienced team will be in touch shortly to discuss your needs.
Contact Form Demo (#1)
We adhere to strict GDPR rules and do not reveal or sell your data to any third-parties. For more, please read our Privacy Policy.
Latest Insights
October 23, 2023
PAYE Investigations

Dive into the world of PAYE investigations. Uncover the facts, implications, and insights in this informative blog

September 29, 2023
London-based accountancy business acquired by Key Business Consultants

Exciting Merger Alert: London's Reed Taylor Benedict & Benedict Leff Accountants Acquired by Key Business Consultants.

September 18, 2023
Tax Tribunals – An Overview

Dive into the realm of Tax Tribunals: A comprehensive overview shedding light on this crucial aspect of taxation.

September 2, 2023
What Is A COP8?

Learn about COP8, a tax-related Code of Practice issued by HMRC for suspected tax avoidance cases. Discover when COP8s are used and the penalties associated with them.

August 20, 2023
HMRC Compliance Checks

Navigate the complexities of HMRC compliance checks confidently. Our comprehensive guide covers everything you need to know about handling tax inspections and more.

August 6, 2023
Tax Evasion and Tax Fraud

Untangling the complexities of tax evasion and fraud. Delve into our comprehensive guide to understand the differences, consequences, and preventive measures.

June 18, 2023
Which Jobs In The UK Have The Best Salary Growth Potential?

Explore the top UK jobs with the highest salary growth potential. Uncover promising career paths and industries that offer substantial earning potential.

May 23, 2023
How To File Dormant Accounts Through Companies House

Learn the step-by-step process of filing dormant accounts through Companies House with our comprehensive guide.

May 19, 2023
Customs Declaration Service (CDS) and VAT

Discover how the Customs Declaration Service (CDS) and VAT intertwine in this insightful blog article.

View Our latest insights »
Get the latest UK tax & business news and guidance delivered straight to your inbox
Newsletter Form (#2)
We care about the protection of your data. No spam. Unsubscribe anytime.
Copyright © 2022 Key Business Consultants LLP. Reg: E&W OC389322
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram