Can businesses claim R&D Tax Credits for travel and subsistence costs?

Yes. According to HMRC, businesses will be able to claim R&D Tax Credits for travel and subsistence out of pocket costs related to R&D. These out of pocket costs, if eligible, can be claimed as a percentage of an employee’s involvement in R&D.


To be eligible for R&D Tax Credits, the employee must have paid the travel or subsistence costs (out of pocket) before the company reimbursed them. For example, if a member of staff needs to fly to a different country as part of their R&D activities, they must pay for their own plane tickets before the company reimburses them later. This is due to the fact that only out of pocket reimbursed travel and subsistence expenses are considered employee expenses and thus eligible for tax relief.


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