Research and development tax relief has been part of the UK tax landscape since 2000, and it has been one of the most active areas of our practice from the outset. Over more than two decades, the legislation has evolved considerably — most significantly with the merger of the previous SME and RDEC schemes into a single unified R&D Expenditure Credit from April 2024. Throughout those changes, our approach has remained constant: to prepare claims that are comprehensive, technically robust, and capable of withstanding HMRC scrutiny.

That last point matters more than it once did. HMRC has substantially increased its compliance activity in this area in recent years, having identified a significant volume of non-compliant and opportunistic claims submitted through less scrupulous advisers. The consequences of a poorly prepared claim — or one that overstates qualifying expenditure — can be severe, including full repayment of credits received, interest, and penalties. The quality of the underlying claim, and the rigour with which it is documented, is not a secondary consideration.

The current regime

For accounting periods beginning on or after 1 April 2024, most companies will claim under the merged R&D Expenditure Credit scheme. Loss-making companies that qualify as R&D-intensive — broadly, those whose qualifying R&D expenditure represents at least 30% of their total expenditure — may access enhanced relief under a separate intensive support route. Both routes require a high standard of documentation and a clear technical narrative to support the claim.

The financial benefit available remains meaningful. Under the merged scheme, the headline RDEC rate produces an effective benefit of 15 pence in every pound of qualifying expenditure for a profit-making company, with different rates applying for loss-making companies and those qualifying for enhanced R&D intensive support. Given that many businesses significantly underestimate the range of activities and costs that qualify, a well-prepared claim frequently delivers a considerably larger benefit than the client anticipated at the outset.

Does your company qualify?

The most common reason eligible companies do not claim is a mistaken belief that R&D relief is only available to businesses engaged in formal scientific research. In practice, the qualifying criteria are considerably broader. Any company that is liable to corporation tax and is a going concern may be eligible, provided it is undertaking activities that seek to achieve an advance in science or technology — resolving genuine technical uncertainty through a process of investigation that a competent professional in the field could not readily resolve.

That definition encompasses a wide range of activities across many sectors: software development, engineering, manufacturing process improvement, product development, and more. The first step is always a focused preliminary conversation to establish whether a viable claim exists. This is a brief and straightforward exercise, and it is far more common to find companies with qualifying expenditure that have never claimed than to encounter a company that has been claiming when it should not.

Our approach

Where a claim is viable, we manage the process in full: identifying the qualifying projects and expenditure, preparing the technical narrative, calculating the claim, and submitting it to HMRC. We work closely with the relevant technical staff within the business to ensure that the scientific and technological content of the claim is articulated accurately and in terms that satisfy HMRC’s requirements.

We act for companies across a wide range of industries, both for those making their first claim and for those with an established claims history who wish to ensure their approach remains compliant and optimal in light of recent legislative and administrative changes. We are also able to review the position of companies that have previously submitted claims through other advisers, where there is a concern about the quality or completeness of what has been submitted.

Contact us

If you believe your company may have qualifying R&D activity — or if you are simply uncertain — please contact us. A preliminary conversation costs nothing and will quickly establish whether it is worth pursuing.