An SME can generally claim for 65% of the payments made to unconnected parties. Special rules apply to scenarios where the parties are connected.
Subcontracted R&D expenditure is generally not allowable for large companies under the RDEC scheme.
Determining whether costs relate to subcontracting of R&D or the provision of workers can be a complex area and can be depended on the working relationship with 3rd parties and contractual terms. It is worth speaking to one of our R&D Incentives Advisory team members regarding eligibility of third-party costs for RDEC claims.