1. Will capitalising development expenditure on the balance sheet reduce your R&D claim?
No, your R&D expenditure claim value is the same regardless of the accounting policy applied for development expenditure. That means that capitalising your development expenditure as an intangible asset and later filing an R&D claim will not affect the size of the refund.
For small- and medium-sized enterprises, the enhancement rate is 86%, if all HMRC criteria are met.