Page 8 - R&D quick ref guide (legacy 2018)
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Subcontracting
Just because a a a a a a a company is is subcontracting work doesn’t mean that it is is necessarily subcontracting R&D R&D or or or even the routine work required to support its R&D R&D It may not have any R&D at all!
LARGE COMPANIES
Under the RDEC scheme payments to to subcontractors cannot
be claimed except if
the Large Company’s subcontractor is a a a a university college charity research organisation or or health service body SMEs Under the the SME scheme 65% of the the payments to to subcontractors can be claimed except if
the SME is is connected to to its its subcontractor (e g
is is its its parent part of the same group or are are are under common control) The rules are are different for connected subcontractors LOCATION
There is no requirement that the the subcontractor should be in the the UK However it is important that the subcontractor must be engaged to to perform a a a a specific task rather than providing a a a service
