COVID-19 and your claim

Due to the COVID-19 pandemic, adjustments have been made to qualifying expenditure for R&D tax credit claims. Several forms of state aid have been introduced to assist businesses effected by the pandemic, and the type of state aid received will affect the subsequent R&D claim.

My company has benefited from state aid, how will this affect my claim?
If a company has received notifiable state aid and spent it on research and development, they will be unable to utilise the SME R&D tax credit scheme.

The list below consists of notifiable state aid schemes:

  • Coronavirus Business Interruption Loan Scheme
  • Coronavirus Large Business Loan Scheme
  • Bounce Back Loans
  • Retail, Hospitality and Leisure Grant Fund

My company used the Furlough scheme, can I still claim through the R&D scheme?
Yes, you can still claim R&D tax credits! However, the Coronavirus Job Retention Scheme, or the Furlough Scheme, is treated as De Minimis state aid. Therefore, we cannot claim for any costs subsidised under the scheme. Any qualifying expenditure unrelated to these costs can still be claimed for.

During the pandemic my company received the Small Business Grant, how will this affect my claim?
If your company has received the Small Business Grant and spent the grant on research and development you cannot claim those costs through the SME R&D scheme.

My company received assistance from The Future Fund during the pandemic, will this affect my claim?
No! As the Future Fund is not considered notifiable state aid or De Minimis aid it has no impact on eligibility for the SME R&D scheme.

Does the Recovery Loan Scheme effect my company’s R&D scheme eligibility?
Generally, the Recovery Loan Scheme does not affect a business’s eligibility for the SME R&D tax credit scheme. However, if a business’s R&D activity falls under the Northern Ireland Protocol, the scheme would have an impact on its ability to claim.