11 August 2025
Thomas Chacko and Quinlan Windle discuss the options for tax breaks in relation to spending on R&D:
- outline of scheme and changes made in 2024
- what R&D means
- can you claim when R&D is contracted out
- practical points about how to deal with enquiries bearing in mind recent case law
1:25 outline of the scheme pre the Finance Act 2024 – basic deduction and 2 further possible schemes (relief for small and medium enterprises + R&D credit).
2:54 effect of Finance Act 2024
3:23 what is R&D? A common question as well as major issue in many of the cases.
8:03 the effect of HMRC now taking very robust stance on R&D tax credit claims and requiring cases to pass a very high threshold. Issues with highly technical areas eg software. Tax payers must be able to explain highly technical projects to HMRC/tribunal in a way that enables them to understand why the work merits the tax credit.
18:40 restrictions on qualifying expenditure in recent case law and following the Finance Act 2024.
37:09 practical problems in enquiries and litigation. Also the use of ADR.
Subscribe
Case citations and legislation
Legislation and guidelines
Corporation Tax Act 2009
Finance Act 2024
BEIS Guidelines – latest update March 2023 (originally the DTI Guidelines)
HMRC Guidance – CIRD84250
Case law
Hadee Engineering Co Ltd v Revenue & Customs [2020] UKFTT 497 (TC)
BE Studios v Smith & Williamson Ltd [2005] EWHC 1506
Flame Tree Publishing v HMRC [2024] UKFTT 349 (TC)
Get Onbord v HMRC [2024] UKFTT 617 (TCC)
Quinn (London) Ltd v HMRC [2021] UKFTT 437 (TC)
Collins Construction Ltd (TC09332) – 21 October 2024
Stage One Creative Services [2024] UKFTT 1059 (TC)
This content is provided free of charge for information purposes only. It does not constitute legal advice and should not be relied on as such. No responsibility for the accuracy and/or correctness of the information and commentary set out in the article, or for any consequences of relying on it, is assumed or accepted by any member of PCTC or by PCTC as a whole.
