There are a number of anomalies under the current R&D regime that can prevent an SME maximising its tax relief claims. Careful planning is needed at the outset to structure investments, group activities and contractual arrangements to avoid potential problems. SMEs may also benefit from relaxation of IP ownership rules and should not overlook claims for costs of aborted projects, pre-trading R&D costs and subsidised expenditure. To facilitate smoother claims an SME should prepare a summary of its R&D activities and consider advance consultation with HMRC's special R&D units.
