Call for Assistance: 02033 259 341
Spondoo Accounting
Call for Assistance: 02033 259 341
Spondoo Accounting

What does HMRC define as Research & Development?

September 1, 2022

Is your R&D Project Genuine for R&D Tax Credits Purposes?

HMRC view research and development for tax purposes to be a clear project that seeks to advance/progress science or technology.
When assessing if your project qualifies for the R&D tax credit, it is advisable to ensure you meet the following criteria:

Are you working towards a genuine Scientific or Technological Advancement?

All expenditure under your R&D claims needs to contribute to the advancement of technology or science clearly and directly by solving some uncertainties within the field.
Your advancement must be clearly defined, and your expenditure needs to be incurred on acquiring knowledge to achieve this goal.
Example
If you build a new software platform to scan your body for cancerous cells via a mobile app (something that has not been done before) would almost certainly qualify as R&D, whereas if you are simply rebranding an standard kitchen appliance imported from China, you will not qualify.

Are you solving genuine Scientific or Technological Uncertainties?

This genuine uncertainty is where your team cannot readily determine a solution or way forward to solve a particular problem.
For the uncertainty to qualify it needs to be more than simply looking up the answer on the internet or in publicly available sources. It must involve genuine research, testing and experimentation.

Is the R&D work being conducted by Competent Professionals?

This factor is to ensure there is a realistic chance of solving and real/genuine problem.
A competent professional can be an individual or team of individuals that have acquired extensive university-level education, and/or worked in the field for a significant period of time.

Is the R&D work structured and involved in Methodical Experimentation?

Even where a solution is determined by research, you will need to experiment to develop your end goal.
This experimentation process must be methodical in nature and not a ‘stab in the dark.’

more tips

Can You Claim Food as a Business Expense?

The golden rule when claiming business expenses is that the cost must be “wholly and exclusively” for business purposes. So, where do you stand when it comes to food and drink? After all, everyone needs these things to survive. When does it become an allowable expense? Read on to find out when your business can claim food and drink as an expense.
READ MORE

Self-Employed National Insurance Class 2 and Class 4 Rates

If you are sixteen and over, self-employed (sole trader or in a partnership) and making a profit befitting the ‘small profits threshold’, you are liable to pay national insurance.
READ MORE

Key UK Personal Tax Year Dates & Deadlines 2021/2022

Are deadlines creeping up on you? Spondoo is here to ensure you keep on top of things and take control again. These are the important dates you should take note of.
READ MORE

How To Set Up A Limited Company 

A Step-by-Step Guide  This is an easy-to-understand, step-by-step guide, to opening a successful limited company. But before we dive in, let’s check the legality surrounding it. 
READ MORE

Accountants in Haslemere, Surrey

We are qualified accountants providing personal and professional services for start-ups, established companies and individuals in and around the Halsemere area in Surrey. With the rise in technology, we have embraced the digitisation of accounting using efficient digital accounting tools to offer reliable services to our customers. Our goal remains to get our clients the best accounting and taxation services at the most affordable rates.
READ MORE

Onsite Canteen and Lunch Vouchers - Are They Taxable?

The provision of food and drink to an employee by their employer is a lovely thing to do. Eventually, it promotes teamwork, loyalty, a sense of belonging and even improves productivity. Taking it at face value makes it look like a simple act of kindness. However, unless it is done correctly, it can cause tax and national insurance compliance issues for the employer.
READ MORE
1 2 3 41
LEARN MORE
Information provided on the site is merely guidance that may change in line with UK law and regulations. Users must not consider this to be financial advice or their sole resource when making any financial decision. Spondoo is a trading name for Accounting SQL Limited, authorised & license accounting firm under the Institute of Financial Accountants.
© Copyright 2023 - Spondoo - All Rights Reserved
How, can we help?
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram