All R&D Tax Credit expenditure must be revenue in nature in order for it to qualify.

SME Scheme (Inception on 1 April 2000):

Qualifying expenditure for accounting periods from 1 April 2000 to 5 April 2003

• Staffing Costs
• Sub-contracted R&D
• Consumable Stores

Qualifying expenditure for accounting periods from 6 April 2003 to 26 September 2003

• Staffing Costs
• Benefits in Kind
• Consumable Stores
• Sub-contracted R&D

Qualifying expenditure for accounting periods from 27 September 2003 to 31 March 2004

• Staffing Costs
• Benefits in Kind
• Consumable Stores
• Sub-contracted R&D
• Externally Provided Workers

Qualifying expenditure for accounting periods from 1 April 2004

• Staffing Costs
• Consumable Items
• Sub-contracted R&D
• Externally Provided Workers
• Computer Software

Large Company Scheme (Inception on 1 April 2002):

Qualifying expenditure for accounting periods from 1 April 2002 to 5 April 2003

• Staffing Costs
• Consumable Stores
• Restricted sub-contracted R&D
• Contributions to Independent Research

Qualifying expenditure for accounting periods from 6 April 2003 to 8 April 2003

• Staffing Costs
• Benefits in Kind
• Consumable Stores
• Restricted sub-contracted R&D
• Contributions to Independent Research

Qualifying expenditure for accounting periods from 9 April 2003 to 31 March 2004

• Staffing Costs
• Benefits in Kind
• Consumable Stores
• Restricted sub-contracted R&D
• Contributions to Independent Research
• Externally Provided Workers

Qualifying expenditure for accounting periods from 1 April 2004

• Staffing Costs
• Consumable Items
• Computer Software
• Restricted sub-contracted R&D
• Contributions to Independent Research
• Externally Provided Workers