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

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.

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 carrying on (or intending to carry on in the future) a trade to which the R&D relates.
5. Be undertaking qualifying R&D activities.
6. Have spent money on these R&D activities. These costs need to be deductible for Corporation Tax purposes, i.e. revenue as opposed to capital expenditure.

But there are other criteria, such as grants and subcontracting, which must also be considered when making an R&D claim. These rules have changed for accounting periods beginning on or after 1 April 2024 following the introduction of the merged scheme. ForrestBrown can advise on the impact of these changes on your claim.