Malcolm Henderson, technical specialist and Adam Kotas, senior tax manager at ForrestBrown, review the new regulations regarding consumables and how they might help to provide clarification in research and development (R&D) tax credit claims.

Writing for Taxation magazine, they look at how and why the legislation that governs HMRC’s research and development (R&D) tax credit incentive has evolved since its introduction in 2000.

They then review this latest change which is designed to clarify what a ‘consumable’ looks like for R&D purposes and when it should be excluded from a claim. This is something that has caused much confusion in the past.

If you are thinking about making an R&D tax credit claim, this article will give you a better understanding of what consumable costs can be included and ensure you avoid any of the usual pitfalls.