Week 2 R&d Cost Categories

Subcontracted labour is an allowable expenditure under the scheme to the extent..

• It includes payments made to another person subcontracted to carry out activities that are part of the company’s relevant R&D

• It is always an allowable expenditure, there are no restrictions

• It includes payments made to another company within the same group only, not third party providers

• It includes payments made to universities and sole traders only

Generally, companies can claim relief across which five cost categories of expenditure?

• Staffing costs, Consumables, Subcontractors, EPWs, Software licence

• Staffing costs, Rent & Rates, Subcontractors, EPWs, Software licences

• Freelancers, Utilities, Subcontractors, EPWs, Software licences

• Staffing costs, Consumables, Subcontractors, Agency workers, Capital expenditure

The measure of staffing costs in respect of employees engaged directly in R&D activities for the directors and employees is given by adding all of the following except..

• The emoluments paid by the company to its directors or employees including all salaries, wages, perquisites and profits whatsoever, other than benefits in kind

• ​​​​​​The secondary class 1 national insurance contributions paid by the company

• The contributions paid by the company to any pension fund operated for the benefit of the directors or employees

• Dividends and loans to participators paid by the company to its directors and other persons with significant control

Which of the following is an expenditure allowable under the consumables category?

• Any costs related to components, tooling, scrappage, prototypes and wasted materials

• The company's full light, heat and power bill

• The company's rent and rates bill

• Any costs related to components, tooling, scrappage, prototypes passed on to the end customer

Which of the following is not true with regards to expenditure incurred on subcontracted labour?

• Under the SME scheme, if the company and the subcontractor are not connected, the company can claim R&D tax relief on 65% of the payment it makes to the subcontractor

• Under the SME scheme, if the company and the subcontractor are not connected, the company can claim R&D tax relief on 100% of the payment it makes to the subcontractor

• Under the SME scheme, if the company and the subcontractor are connected, the company can claim R&D tax relief on 100% of the payment it makes to the subcontractor

• Under the Large Company scheme, the expenditure on R&D contracted to other persons is generally not allowable

A person is an externally provided worker in relation to the claimant company if all of the following conditions are satisfied except if..

• They are an individual (company)

• They are not a direct employee of the company

• They are subject to the supervision, direction or control by the company as to the manner in which those services are provided

• They are self-employed

Qualifying indirect activities are activities which form part of a project but do not directly contribute to the resolution of the scientific or technological uncertainty. These can include all of the following except..

• Scientific and technical information services, insofar as they are conducted for the purpose of R&D support (such as the preparation of the original report of R&D findings)

• ​​​​​​Ancillary activities essential to the undertaking of R&D (e.g. taking on and paying staff, leasing laboratories and maintaining research and development equipment including computers used for R&D purposes)

• ​​​​​​Services subcontracted out to third party providers or sole traders, to the extent these entities or individuals are not connected with the claimant company

• ​​​​​​Feasibility studies to inform the strategic direction of a specific R&D activity

Location

• London

• Glasgow

• Casablanca

• Manchester

• Other

Role

• Technical Consultant

• Financial Consultant

Name