TECHNICAL AND FINANCIAL EXPERTS FOR R&D TAX RELIEF CLAIMS AND INNOVATION GRANTS

R&D projects that might qualify for tax relief

Your company can only claim for R&D tax relief if an R&D project seeks to achieve an advance in overall knowledge or capability in a field of science or technology through the resolution of scientific or technological uncertainty - and not simply an advance in its own state of knowledge or capability.

How to show the project is R&D within the tax definition?

There are guidelines which help in deciding if your company has an R&D project for tax purposes:

• Advance in science or technology: This includes the adaptation of knowledge or capability from another field of science or technology in order to make such an advance where this adaptation was not readily deducible

• An advance in science or technology may have tangible consequences (such as a new or more efficient cleaning product, or a process which generates less waste) or more intangible outcomes (new knowledge or cost improvements, for example).

• A project which seeks to, for example:

a. extend overall knowledge or capability in a field of science or technology; or

b. create a process, material, device, product or service which incorporates or represents an increase in overall knowledge or capability in a field of science or technology; or

c. make an appreciable improvement to an existing process, material, device, product or service through scientific or technological changes; or

d. use science or technology to duplicate the effect of an existing process, material, device, product or service in a new or appreciably improved way (e.g. a product that has exactly the same performance characteristics as existing models, but is built in a fundamentally different manner), will therefore be R&D.

• Even if the advance in science or technology sought by a project is not achieved or not fully realised, R&D still takes place.

• If a particular advance in science or technology has already been made or attempted but details are not readily available (for example, if it is a trade secret), work to achieve such an advance can still be an advance in science or technology.