Research & Development (R&D) Tax Relief

Research & Development (R&D) Tax Relief is a government incentive designed to reward businesses investing in innovation. Eligible companies may be able to reduce their Corporation Tax liability or, in some cases, receive a cash payment from HMRC.

R&D doesn’t have to involve groundbreaking inventions. If your business is developing or improving products, services or processes and overcoming scientific or technological uncertainty, your work may qualify.

Businesses across many sectors may qualify, including manufacturing, engineering, software, food and drink, construction, healthcare and environmental technologies. Eligibility depends on the nature of the work being carried out, rather than the industry itself.

HMRC has increased its focus on R&D tax relief claims in recent years to help prevent incorrect or fraudulent claims. As a result, it’s more important than ever to ensure claims are accurate, well documented and supported by clear technical and financial evidence.

We’ll work with you to understand your projects, identify qualifying activities and prepare a robust claim that meets HMRC’s requirements. If HMRC has any questions, we’ll support you throughout the enquiry process.

Qualifying costs can include staff costs, subcontractor costs, software, consumables and certain overheads directly related to the qualifying project.

Patent Box is a separate tax relief that allows qualifying companies to apply a reduced rate of Corporation Tax to profits generated from patented inventions. We can advise whether your business could benefit from this relief.

The earlier, the better. Speaking to us before or during a project can help you identify qualifying activities, keep the right records and gather the evidence needed to support a future claim. We can also review completed projects to establish whether they may qualify.

Yes. If you think your business may have missed an R&D claim, we can review previous accounting periods to determine whether a claim can still be made.