Expenditure on indirect qualifying activities can be included within Research and Development (R&D) claims.
Following recent consultation, HM Revenue & Customs (HMRC) has accepted that qualifying indirect activities (which are activities which form part of an R&D project, but do not directly contribute to the resolution of the scientific or technological uncertainty) can be included in a company's R&D claim. Final guidance on how claims will be made is still under consultation.
This is a much welcomed change and for many companies carrying out R&D this will increase the level of their R&D tax relief claims. Many companies could benefit from a cash tax saving either by way of a tax refund from HMRC or additional small and medium sized enterprise tax credits.
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