Specialist R&D Tax Credit Claims for UK Businesses

Research & Development Tax Relief, R&D tax credit claims

What Are R&D Tax Credits?

R&D tax credits are a UK government incentive designed to support companies that invest in innovation. A claim may be available where a business has worked to resolve scientific or technological uncertainty while developing or improving products, processes, or software.

  • Available to UK limited companies
  • Applies across many sectors, not just laboratories
  • Can result in a cash payment or corporation tax reduction

Who Can Qualify for R&D Tax Relief?

Eligibility is assessed based on the nature of the work carried out, not the size of the company or the industry label.

  • Software development involving technical uncertainty
  • Engineering or manufacturing projects requiring trial and testing
  • Process improvements where existing solutions could not be relied upon
  • Integration of complex systems that required bespoke technical solutions

Routine work or the simple application of existing knowledge does not qualify.

How HMRC Assesses R&D Claims

HMRC defines R&D by reference to whether a competent professional in the field could easily resolve the problem using existing knowledge. If the solution was not readily available and required analysis, testing, or experimentation, the work may fall within the scope of the scheme.

What Costs Can Be Included?

Common qualifying cost categories include:

  • Staff salaries, employer NICs, and pension contributions
  • Externally Provided Workers under agency arrangements
  • Subcontractor costs (subject to HMRC limits)
  • Software licences used directly in R&D
  • Consumable items used during testing or prototyping

Costs must relate directly to qualifying R&D activity and be supported by evidence.

How the R&D Tax Credit Claim Process Works

  • Identify qualifying projects and periods of uncertainty
  • Prepare a technical explanation aligned with HMRC guidance
  • Calculate qualifying expenditure
  • Submit the claim as part of the company tax return
  • Respond to any HMRC queries, if raised

A well-prepared claim reduces the likelihood of delay or enquiry.

R&D Tax Credits by Industry

  • R&D tax credits for software companies
  • R&D tax relief for fintech businesses
  • R&D tax credits for manufacturing
  • R&D tax relief for engineering firms
  • R&D tax credits for construction

Independent Guidance on R&D Tax Relief

We provides independent information on R&D tax credits and how claims are assessed in practice. Where appropriate, businesses may be introduced to regulated R&D tax advisers who can assist with claim preparation and submission.

Check Whether Your Work May Qualify

If your business has undertaken technical or software development work in the last two accounting periods, you may be eligible for R&D tax relief.

Request an eligibility review

Some more resources and guides:


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