What is R&D Tax Relief?

The R&D Tax Relief rewards companies investing in innovation. Whether you are developing new products, processes, or services—or improving existing ones—your business could be eligible to reclaim a portion of its research and development costs.

Your company can only claim for R&D Relief if an R&D project that is related to your company’s trade seeks to achieve an advance in overall knowledge or capability in a field of science or technology through the resolution of scientific or technological uncertainty – and not simply an advance in its own state of knowledge or capability.

Determining what constitutes such an advance is a complicated area that requires professional advice as to whether or not the project qualifies.

For SMEs: Claim back up to 26.97% of your qualifying R&D costs.
For Larger Companies: Reclaim up to 15% of eligible expenses under the RDEC scheme.

Eligible activities include:

Developing new products, processes, or services: Innovating to bring something new to market, or significantly improving existing offerings.

Advancing knowledge or capabilities: Overcoming technical uncertainties in your field to create more efficient systems or products.

Improving software or technology: Enhancing existing software or creating new software to solve complex problems.

Testing and prototyping: Engaging in experimentation, building prototypes, or trialling new methods and solutions.

Streamlining processes: Implementing improvements that reduce waste or increase efficiency, particularly in manufacturing or engineering.

Learn how to maximise your R&D tax claim and stay compliant with HMRC’s ever-changing regulations. This guide covers everything you need to know to make sure your business claims its full entitlement.

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Who can benefit?

R&D tax relief is available to a wide range of companies, but with HMRC tightening its regulations, it is crucial to understand exactly who qualifies and how the new rules may affect your claim.

SMEs benefit most from R&D tax relief, especially those with under 500 employees. For larger companies, the RDEC scheme applies, but the benefits are generally smaller.

Ideal Candidates:

Company Size: SMEs can claim up to 26.97% of their R&D expenditure. Larger companies (under the RDEC scheme) can claim up to 15% of their qualifying R&D costs. Since April 2024, businesses claiming relief for R&D performed abroad or via subcontractors face stricter scrutiny. Only work physically performed in the UK will qualify in most cases.
Industries: Companies in technology, manufacturing, life sciences and engineering are common beneficiaries, but R&D tax relief applies to any sector involved in solving technical challenges. 2023 guidance expands relief to areas like pure mathematics and software development, making it easier for certain sectors to qualify.
Qualifying Spend: Expenditure on staff, subcontractors, materials and software used in R&D activities.

If you are unsure whether your business qualifies, we can help assess your eligibility.

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How it works

We take the complexity out of claiming R&D tax relief. Our process ensures that your claim is maximised and compliant with HMRC’s latest requirements.

Free Phone Consultation – We evaluate your company’s eligibility and explain how R&D tax relief could benefit you.
Detailed Analysis – Our experts review your R&D costs and ensure all qualifying activities are captured.
Claim Submission – We handle all HMRC submissions, making sure your claim is accurate and compliant.

Why choose Tax Innovations?

The rules governing R&D tax relief are becoming more complex, and recent changes mean that expert advice is more important than ever to ensure your claims are both maximised and compliant with HMRC’s evolving regulations.

Tighter Regulations: HMRC has introduced new guidance aimed at reducing non-compliance and abuse of the R&D tax relief system. This includes stricter rules on claims involving subcontractors and overseas activities, as well as more detailed reporting requirements for all claims starting from April 2024.
Compliance is Critical: As HMRC increases scrutiny, having a partner with the knowledge to navigate these rules is essential. At Tax Innovations, we stay ahead of regulatory changes to ensure your claim is not only accurate but also safe from potential challenges or HMRC investigations.
Proven Expertise: With 30 years of experience, we have successfully secured millions in R&D tax relief for our clients while maintaining full compliance with all HMRC guidelines.

Whether you are an SME or a larger company, our team ensures that no eligible expenditure is missed and that your claim meets the new, stricter requirements.

Tax Innovations has helped a variety of companies successfully claim Research & Development Relief on their relevant costs. If you would like further information on whether you can claim relief for your research and development costs, or any other tax relief, please email customerservice@taxinnovations.com or call us on 01962 856 990.