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What is ‘qualifying expenditure’?

Author

Andy Wood

Andy is a practical, creative tax adviser who assists a variety of clients in achieving their personal and commercial objectives in the most tax efficient manner.

 

  • You can claim research and development tax credits on R&D revenue expenditure, i.e. the day-to-day operational costs directly relating to the innovation project.
  • Generally speaking, you cannot include capital expenditure within the R&D tax credit claim.
  • Revenue expenditure includes the following costs which can be included in your R&D claim:
  • Staffing costs
  • Externally Provided Workers (EPWs)
  • Software
  • Consumable items
  • Clinical trial volunteers in the pharmaceutical industry
  • Subcontracted R&D (usually at a different rate to main SME relief rate)
  • This is where you can take affirmative steps to maximise the value of your claim. An experienced R&D relief specialist will carry out a thorough review and itemisation of all R&D related spend.
  • ETC Tax are experienced in handling client’s claims from start to finish. Get in touch if you have any queries.

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