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Is there a minimum amount of expenditure for an R&D tax credit claim?

Phil Smith CTA
Technical Lead

No, you do not need to have spent a minimum amount on qualifying research and development (R&D) to submit an R&D tax credit claim. But this has not always been the case.

Prior to 1 April 2012, you needed to have incurred a minimum of £10,000 of qualifying expenditure on R&D projects in order to make a claim. As of 1 April 2012, this is no longer the case. This means that no matter how much qualifying R&D expenditure you have, it is possible to make an R&D tax credit claim.

R&D tax credit eligibility criteria

The following is a list of the eligibility criteria for R&D tax credits. To make a claim, you must:

  1. Be a UK company subject to Corporation Tax.
  2. Be a going concern.
  3. Not be in administration or liquidation.
  4. Be undertaking qualifying R&D activities.
  5. Have spent money on these R&D activities.

But there are other criteria, such as grants and subcontracting, which must also be considered to make an R&D claim. For this reason, professional advice is recommended when preparing your claim.

R&D tax credits is all we do at ForrestBrown. Because of this, our team of chartered tax advisers, sector specialists, lawyers and ex-HMRC inspectors are often able to identify more qualifying R&D activities and costs. Our service will save you time and is completely end-to-end, which includes dealing with HMRC on your behalf. With a seat on HMRC’s Research & Development Communication Forum, we benefit from policy-level insights.

If you are unsure about what costs qualify for R&D tax credits, get in touch with us