HMRC R&D Tax Credits Simple Guide

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HM Revenue & Customs has recently released a “simple” guide for companies seeking to claim research and development tax relief (R&D tax credits)

With the subtitle “Making R&D easier for small companies”, the guide is useful for companies that may be new to this tax incentive as it seeks to cover the key principles for qualification, eligible costs and some common areas of complexity (e.g. SME definition, subcontractor status etc).​

Here’s what we like about it:

  • Useful summary of how to show that your project qualifies within the R&D tax rules
  • Clear illustrated example on applying the SME definition in group situations
  • Example of a project timeline and elements that might fall in / out of qualifying costs  
  • Clear explanation of eligible and ineligible expenditure
  • Some good case studies – to help bring it to life
  • FAQs section and glossary – to help with the jargon!

There’s not a lot not to like about this guide and it is a useful addition to the overview that HMRC already provides (which is a bit more generic). 

You can download the R&D Tax Relief Simple Guide here. ​