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:
- Be a UK company subject to Corporation Tax.
- Be a going concern.
- Not be in administration or liquidation.
- Be undertaking qualifying R&D activities.
- 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 R&D consultative committee, we benefit from policy-level insights we use to maximise your claim.