What costs qualify?

The DTI guidelines state that R&D takes place when a project seeks to achieve an advance in science or technology. The eligible costs of the project are:

• staffing costs for R&D employees (CIRD83000)
• paying an external staff provider for R&D staff (CIRD84000)
• materials, water, fuel and power for R&D (CIRD82300)
• software directly used in the R&D (CIRD82500)
• subcontracting out R&D activities (CIRD84200)

Note that these costs are only eligible when they are incurred on activities that directly contribute to the resolution of scientific or technological uncertainty. Further guidance on calculating the correct amount of qualifying expenditure within these categories is set out in the CIRD manual, under the CIRD links above.