R&D tax relief isn’t just about doing research. It’s about claiming the right kind of costs—and knowing what qualifies is half the battle. From April 2023, HMRC has tightened the rules and categories.
Not all R&D spending is eligible. The work must aim to make an advance in science or technology, not just replicate or tweak existing solutions. And even if the project qualifies, only certain types of costs are claimable—most importantly, only revenue expenditure (not capital). Since 2023, cloud and data spend is also in scope—but restrictions apply to subcontractors and externally provided workers.
📌 What’s Changing?
- Cloud & data now included
- Subcontractor claims restricted
- Stricter interpretation by HMRC
- Routine adaptation is excluded
- Must relate to a trade
📌 Qualifying Expenditure Types
- Staff costs
- Software
- Consumables & transformable
- Data & cloud licences
- Clinical trial volunteers
- Subcontracted R&D (limited)
- Externally provided workers
Many companies over claim R&D relief without realising it. Knowing the limits means stronger claims—and fewer compliance headaches.