Paragraph 6 Qualifying expenditure: claims under the new schemesF1

(1)

If the claim relates to an accounting period beginning on or after 1st April 2024, the following information.

(2)

The amount of qualifying expenditure in respect of which the claim is made.

(3)

In this paragraph, “qualifying expenditure”—

(a)

in relation to a claim under Chapter 1A of Part 13 of CTA 2009^f1, means qualifying Chapter 1A expenditure^f2;

(b)

in relation to a claim under Chapter 2 of that Part, means qualifying Chapter 2 expenditure^f3.

(4)

The amount of the qualifying expenditure that falls within each of the following categories—

(a)

in-house expenditure incurred on staffing costs^f4;

(b)

in-house expenditure incurred on software;

(c)

in-house expenditure incurred on data licences;

(d)

in-house expenditure incurred on cloud computing;

(e)

in-house expenditure incurred on consumable items^f5;

(f)

in-house expenditure that is qualifying expenditure on externally provided workers^f6;

(g)

in-house expenditure incurred on relevant payments to the subjects of a clinical trial^f7;

(h)

expenditure incurred in making the qualifying element of a contractor payment^f8.

(5)

If an amount more than nil is given for the category in sub-paragraph (4)(f)—

(a)

the number of externally provided workers whose earnings form part of the qualifying expenditure concerned;

(b)

in relation to each such worker, the employer’s PAYE reference, if available;

(c)

whether any of the qualifying expenditure concerned is attributable to research and development undertaken outside the United Kingdom, and if so—

(i)

how much;

(ii)

in respect of each worker whose earnings form part of the expenditure, whether the company or the staff controller^f9 is required to account both for income tax under PAYE regulations and for Class 1 national insurance contributions in respect of any part of those earnings;

(d)

if—

(i)

a negative answer is given under paragraph (c)(ii) of this sub-paragraph in respect of any worker, and

(ii)

no positive answer was given under paragraph (a) or (b) of paragraph 1(2) of this Schedule,

the company’s reasons for considering that section 1138A of CTA 2009^f10 applies.

(6)

No more than 10 references need to be given under sub-paragraph (5)(b); but in selecting which references to give from more than 10, the company must not omit the reference of an employer that employed more of the workers referred to in sub-paragraph (5)(a) than an employer whose reference is given.

(7)

If an amount more than nil is given for the category in sub-paragraph (4)(h)—

(a)

the identity of each relevant contractor;

(b)

the employer’s PAYE reference for each relevant contractor, if available;

(c)

in relation to each relevant contractor, the amount of the qualifying expenditure concerned that consists of contractor payments^f11 to that contractor;

(d)

whether any of the qualifying expenditure concerned is attributable to research and development undertaken outside the United Kingdom, and if so how much;

(e)

if—

(i)

a positive answer is given under paragraph (d) of this sub-paragraph, and

(ii)

no positive answer was given under paragraph (a) or (b) of paragraph 1(2) of this Schedule,

the company’s reasons for considering that section 1138A of CTA 2009 applies.

(8)

For the purposes of sub-paragraph (7)—

(a)

a “relevant contractor” is a company that received a contractor payment that is comprised in the qualifying expenditure notified under sub-paragraph (4)(h);

(b)

if there are 10 or fewer such companies, each is a relevant contractor;

(c)

if there are more than 10 such companies, only the 10 that received payments accounting for the 10 highest shares of the qualifying expenditure notified under sub-paragraph (4)(h) (taking together separate payments made to a single company) are relevant contractors.

(9)

The amount of the qualifying expenditure that is attributable to qualifying indirect activities.

Annotations

Textual amendments

F1: Sch. 2 paras. 1-10 substituted for Sch. 2 paras. 1, 2 (2.10.2024) by The Research and Development Relief (Information Requirements etc.) Regulations 2024 (S.I. 2024/950), regs. 1(2), 2(2)

Footnotes

f1: For the requirement to register for value added tax see section 3 of, and Schedules 1 to 3A to, the Value Added Tax Act 1994 (c. 23) and Part 2 of S.I. 1995/2518.
f2: S.I. 2003/2682; there are amendments to regulation 2(1) but they are not relevant to these Regulations.
f3: Section 1058D was inserted by paragraph 3 of Schedule 3 to the Finance Act 2021 (c. 26).
f4: For the meaning of “externally provided worker” see section 1128 of the Corporation Tax Act 2009.
f5: For the meaning of “qualifying expenditure” see section 1051 of the Corporation Tax Act 2009.
f6: For the meaning of “staffing costs” see section 1123 of the Corporation Act 2009. Section 1123 was amended by S.I. 2019/689 and 2020/1499.
f7: For the meaning of “qualifying expenditure on externally provided workers” see section 1127 of the Corporation Tax Act 2009.
f8: For meaning of the “qualifying expenditure on contracted out R&D” see section 1053 of the Corporation Act 2009. Section 1053 was amended by section 13 of the Finance (No. 3) Act 2010 (c. 33) and section 28(4)(h) of the Finance Act 2015 (c. 11).
f9: For the meaning of “software or consumable items” see section 1125 of the Corporation Tax Act 2009.
f10: For the meaning of “Relevant payments to the subjects of a clinical trial” see section 1140 of the Corporation Tax Act 2009.
f11: For the meaning of “data licences” see section 1125 of the Corporation Tax Act 2009.