R&D tax reliefs: Research and Development Expenditure Credit scheme: R&D contracted to an SME
To qualify under the Research and Development Expenditure Credit scheme the R&D must be contracted out to the SME by:
- a large company, or
- a person otherwise than in the course of a trade profession or vocation the profits of which are chargeable to tax under Case I or II of Schedule D.
The expenditure must be relevant R&D for the SME (CIRD81400) and be revenue expenditure incurred on either:
- consumable items CIRD82300,
- consumable stores CIRD82450,
- software CIRD82500,
- staffing costs CIRD83000,
- externally provided workers CIRD84000,
- subjects of clinical trials CIRD84400.
Or, work contracted by the SME company to be directly carried out by:
- a qualifying body (see CIRD82200), or
- an individual, or
- a partnership, each member of which is an individual.