Can a company claim R&D tax credits for the first half of an accounting period, where they have submitting a grant claim for the second half of an accounting period?
Guidance on the HMRC website seems to suggest the company can't: CIRD81670 "Where an R&D project has received funding which is a notified State aid then no expenditure by the company on that project can qualify for the R&D SME relief".
Thanks in advance.
Replies (4)
Please login or register to join the discussion.
Actually...
HMRC's website states the grant funded project can't qualify for the SME scheme. It can qualify for the large company scheme. The company can split out different projects and submit R&D claims for both schemes.
Assuming it is an SME claim then the CIRD says it all - almost!
Two questions:
1. Is it state aid or another non-state aid grant?
2. Does the grant cover all the company's R&D or just an element of it (e.g. funding for a sub-project or for one project while the company carries out a number of R&D projects)?
If it is state aid for the entire R&D then you could consider a large company claim instead...
Check the grant
You may already know this, but the key word is 'notified'. Not all grants are notified state aid, especially small-value ones. You may need to check the grant document, or check with the provider of the grant. Most of the grants I've seen have been de-minimis, and we've successfully claimed R&D tax credits. De-minimis funding doesn't prevent you claiming R&D tax credits, as long as the total received, including the R&D tax credit claim, is within the de-minimis limit.