Research and development (R&D) tax credits have been in the news a lot of late – two significant changes to the scheme are expected to take effect from April 2023 while more imminently, HMRC is investigating the huge volume of what they call ‘spurious’ claims which have increased over the past few years.

R&D tax credits are intended to support companies who are investing in science and technology projects or schemes. To qualify, companies need to already pay corporation tax and the associated project should involve either advancement, innovation or research in the science and technology areas. Staff costs, research contributions and software all qualify under the scheme.