Fair, robust R&D tax relief claims
Our core service is helping businesses access the R&D tax relief they're entitled to, with clarity, honesty, and technical rigour.
What is the benefit of R&D tax relief?
R&D tax relief is a UK government incentive designed to support innovation. It allows companies that invest in eligible research and development to reduce their Corporation Tax liability or, in some cases, receive a cash credit.
The benefit can significantly reduce the net cost of innovation activities, helping you reinvest in further development, hiring, or growth.
From April 2024, a new merged R&D scheme was introduced, replacing the previous SME and RDEC schemes for most companies. This aims to simplify the system and ensure more consistent treatment of expenditure across business sizes.
It’s also important to be aware of recent changes to the rules around how claims are made. For companies submitting for the first time, or those who haven’t claimed in the past three years, HMRC now requires advance notification within six months of the end of the accounting period. Missing this window could mean missing the opportunity to claim altogether.
In addition, there are tighter restrictions on overseas R&D activity, with claims now only permitted in limited circumstances. If any part of your R&D work takes place outside the UK, it’s essential to assess whether the criteria for inclusion are still met.
Subcontracting rules have also been clarified. In most cases, only the company that initiates and controls the R&D work, and bears the risk, is eligible to claim for it. This means a careful review of project structures is now more important than ever.
What can be included in eligible costs?
To qualify, your work must involve attempts to overcome scientific or technological uncertainty, not just routine problem-solving or commercial development.
If you meet the criteria, eligible costs can include:
- Staffing costs – salaries, pensions, NICs, and a proportion of support/admin staff time
- Externally provided workers (EPWs) – such as agency workers or secondees
- Subcontracted R&D – subject to scheme rules
- Software – licence fees and development costs used in R&D
- Consumables – materials used or transformed in the R&D process (e.g. prototypes, lab materials)
- Utilities – power, water, and fuel directly used in R&D
Note: You must be able to evidence the connection between each cost and eligible R&D activity.
How is the relief received?
Merged Scheme (from April 2024)
Under the new, unified R&D scheme, relief is provided as a taxable credit, typically worth 20% of qualifying R&D costs. After Corporation Tax, most companies receive a net benefit of around 15–16%.
If you're profitable, the credit reduces your tax bill.
If you're loss-making, it may be paid as a cash credit, subject to certain caps.
R&D-intensive SMEs may still receive enhanced support of up to 27% through a new provision called ERIS (Enhanced R&D Intensive Support).
Legacy Schemes (before April 2024)
SME Scheme:
Relief was given as an additional tax deduction of 130%, resulting in a net tax saving of circa 24.7%.
Loss-making SMEs could choose to surrender losses for a cash credit of up to 33.35% of R&D costs.
RDEC Scheme:
Provided a taxable credit (13%–20%) shown "above the line" in company accounts.
After tax, this gave a net benefit of circa 10–16%, often used by larger companies or SMEs receiving grants.
Whether you're claiming under the merged scheme or submitting for a previous period, we ensure your claim is fully compliant and clearly presented to HMRC.
We help you claim with confidence
At TaxTek, we support you through the full lifecycle of a claim:
Eligibility Assessment
Honest, upfront advice on whether your work qualifies
Evidence Gathering
Technical narratives and financial breakdowns
Submission Support
Accurately prepared claims submitted to HMRC
Post-Submission Support
Handling any follow-up questions or compliance checks
We don't inflate figures, and we don't promise the world. We deliver fair, well-documented claims that stand up to scrutiny and help you secure the relief you're entitled to.
Regulatory Compliance
At TaxTek, we ensure every claim aligns with the latest HMRC guidelines and relevant tax relief legislation, including the merged R&D scheme introduced in April 2024. We take great care in documenting claims with accuracy and transparency, ensuring they meet the highest standards of compliance. Whether you're submitting a claim or responding to an HMRC review, we'll help you navigate the process, providing robust, well-supported submissions that stand up to scrutiny.