Qualifying R&D activity
With research and development tax credits providing the opportunity for businesses to recoup some of the expenditure spent on qualifying activity, it’s essential to understand exactly which projects meet the necessary criteria. After all, a successful claim is about demonstrating that you have spent money on projects that look to make an advancement in science or technology, but the terminology is so broad there is always a level of uncertainty.
Providers of R&D tax solutions and accountancy services are specially trained to successfully manage and submit applications for R&D tax credits, but having a head start and knowing precisely what activity you’re engaging in will prove effective in making a claim.
As stated above, R&D activity is all about seeking an advancement. According to the HMRC guidelines, the definition for qualifying activity is being able to demonstrate that any work:
- looked for an advance in