Week 2 R&d Cost Categories

11 Questions | By Jrandles | Last updated: Mar 21, 2022 | Total Attempts: 41

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This quiz will test basic knowledge and understanding of qualifying Research and Development costs. These questions will be graded and the results will be viewed by your Team Leader, consultant supervisors and talent development. Please complete all sections of this assessment including name, location and role. The assessment is comprised of two non-graded questions and eight multiple choice graded questions. The first two questions are not graded (i. E. Location and Job Role). There is only one right answer per question. There is no time limit for this assessment. Please use this quiz to identify any areas of R&D cost categories that you may need a bit more information on. Please let your Team Leader know once you've completed this assessment

Questions and Answers

1.

Name
2.

Location
- A.
  
  London
- B.
  
  Glasgow
- C.
  
  Casablanca
- D.
  
  Manchester
- E.
  
  Other
3.

Role
- A.
  
  Technical Consultant
- B.
  
  Financial Consultant
4.

Generally, companies can claim relief across which five cost categories of expenditure?
- A.
  
  Staffing costs, Consumables, Subcontractors, EPWs, Software licence
- B.
  
  Staffing costs, Rent & Rates, Subcontractors, EPWs, Software licences
- C.
  
  Freelancers, Utilities, Subcontractors, EPWs, Software licences
- D.
  
  Staffing costs, Consumables, Subcontractors, Agency workers, Capital expenditure
5.

Subcontracted labour is an allowable expenditure under the scheme to the extent..
- A.
  
  It includes payments made to another person subcontracted to carry out activities that are part of the company’s relevant R&D
- B.
  
  It is always an allowable expenditure, there are no restrictions
- C.
  
  It includes payments made to another company within the same group only, not third party providers
- D.
  
  It includes payments made to universities and sole traders only
6.

Which of the following is not true with regards to expenditure incurred on subcontracted labour?
- A.
  
  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
- B.
  
  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
- C.
  
  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
- D.
  
  Under the Large Company scheme, the expenditure on R&D contracted to other persons is generally not allowable
7.

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..
- A.
  
  The emoluments paid by the company to its directors or employees including all salaries, wages, perquisites and profits whatsoever, other than benefits in kind
- B.
  
  The secondary class 1 national insurance contributions paid by the company
- C.
  
  The contributions paid by the company to any pension fund operated for the benefit of the directors or employees
- D.
  
  Dividends and loans to participators paid by the company to its directors and other persons with significant control
8.

A person is an externally provided worker in relation to the claimant company if all of the following conditions are satisfied except if..
- A.
  
  They are an individual (company)
- B.
  
  They are not a direct employee of the company
- C.
  
  They are subject to the supervision, direction or control by the company as to the manner in which those services are provided
- D.
  
  They are self-employed
9.

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..
- A.
  
  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)
- B.
  
  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)
- C.
  
  Services subcontracted out to third party providers or sole traders, to the extent these entities or individuals are not connected with the claimant company
- D.
  
  Feasibility studies to inform the strategic direction of a specific R&D activity
10.

Under the software licenses cost category, which of the following would generally be an allowable software license expenditure?
- A.
  
  Adobe
- B.
  
  Microsoft Office
- C.
  
  AWS
- D.
  
  CAD
11.

Which of the following is an expenditure allowable under the consumables category?
- A.
  
  Any costs related to components, tooling, scrappage, prototypes and wasted materials
- B.
  
  The company's full light, heat and power bill
- C.
  
  The company's rent and rates bill
- D.
  
  Any costs related to components, tooling, scrappage, prototypes passed on to the end customer