Corporate Intangibles
Research and Development
(CIRD) Updates

The HMRC Corporate Intangibles Research and Development Manual (CIRD) section CIRD84250 outlines subcontracted activities and how HMRC assesses whether R&D work is subcontracted for SME tax relief, based on factors like contract terms, control, financial risk, and IP ownership.

HMRC has refreshed CIRD89705, the guidance on the R&D Expenditure Credit (RDEC) scheme, reflecting how the programme has evolved over the past decade. While the core rules remain the same, the update highlights key administrative changes, including digital filing requirements and new claim submission processes, helping businesses understand how to prepare and submit compliant R&D tax credit claims.

Understanding how the PAYE cap applies under the UK’s reformed R&D tax relief schemes is essential for businesses claiming under RDEC or the Enhanced R&D Intensive Support (ERIS) scheme. We break down HMRC’s updated CIRD140000 guidance, explain how the cap is calculated, what exemptions may apply, and the main differences between the schemes.

This article explores HMRC’s recent updates to its CIRD81920 guidance on R&D tax relief for the pharmaceutical industry. It outlines the continued framework for drug development stages, and the removal of important eligibility clarifications, highlighting the key implications for companies preparing R&D claims under the revised rules.

HMRC’s CIRD81670 clarifies how companies claiming R&D tax relief under the SME scheme must treat notified State aid, preventing them from including any project costs subsidised by such aid in their SME relief claim. It also explains how de minimis aid affects eligibility, confirms that RDEC remains available for assisted projects, and differentiates between direct EU grants (not State aid) and EU structural funding (which is treated as State aid).