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

(Last updated on )

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

Have a question for our team?

It can be complicated to submit an R&D tax credit claim to HMRC’s exacting standards.

Get in touch with our team of chartered tax advisers, chartered accountants, lawyers, sector specialists, former HMRC inspectors and quality assurance experts to access expert guidance for your claims.

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