R&D relief focusses on ‘staff and other qualifying costs’

Author: Laurence Bard

Categories: Employees, Innovation, Research, Research and development, Technology
Tags: R&D
Laurence Bard: "The principle cost is your in-house employees, the costs of their salaries, bonuses, national insurance, pensions.  If you subcontract R&D out to another company that would qualify, there’s a sort of profit margin taken off it.  But designed to get to their underlying staffing costs, the cost of software bought for R&D, the cost of raw materials consumed in the process, for example you might build a prototype and need, spend money on raw materials and have to scrap the prototype at the end of it. Those are the principle costs.  The sort of things that don’t qualify for example would be rent and rates, hardware that gets capitalised in your accounts as a capital cost.  So the big thing is the staffing cost tends to be in most companies."
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