R&D Tax Relief Claims

R&D TAX RELIEF CLAIMS

Research and development tax relief remains one of the most valuable incentives in the UK tax code. It is also, since HMRC’s crackdown on abuse, one of the most heavily policed. Mandatory claim notification, the Additional Information Form, and a large compliance-check team mean the days of a two-page narrative and a spreadsheet are over. A claim that cannot survive an enquiry is not an asset; it is a liability with a repayment attached.

We prepare claims the way we would want to defend them. That means identifying the genuine advance in science or technology, isolating the technological uncertainty your team actually faced, tying qualifying expenditure back to contemporaneous records, and telling you plainly when a project does not qualify. Fewer claims, better claims.

The problems we solve for you

Most of the risk in an R&D claim is created long before the CT600 is filed.

• Missed notification. New and lapsed claimants must notify HMRC within six months of the period end or the claim is simply invalid.
• Weak narratives. Descriptions of commercial innovation rather than technological uncertainty — the single most common reason a claim fails.
• Over-claimed costs. Subcontracted, subsidised or overseas expenditure treated as qualifying when the current rules say otherwise.
• Enquiry exposure. Claims prepared by volume providers who are long gone when HMRC writes.

Why companies choose TaxDigit

We are chartered certified accountants who also prepare the corporation tax return — so the claim and the computation agree, and one team answers for both.

• Technical interviews. We talk to the engineers, not just the finance team.
• Contemporaneous evidence. We help you build the record while the work is happening, not reconstruct it a year later.
• Honest gatekeeping. If it does not qualify, we say so — before HMRC does.
• Enquiry support. We stand behind every claim we file and handle the compliance check if one comes.

The current schemes, in plain terms

For accounting periods beginning on or after 1 April 2024 the old SME and RDEC schemes were replaced by two regimes:

• Merged scheme R&D Expenditure Credit (RDEC) — an above-the-line taxable credit at 20% of qualifying expenditure, available to companies of any size.
• Enhanced R&D Intensive Support (ERIS) — for loss-making SMEs whose qualifying R&D expenditure is at least 30% of total expenditure. An additional 86% deduction (186% in total) plus a payable credit worth up to 14.5% of the surrenderable loss — a benefit of up to roughly 27% of qualifying spend.

Overlaying both: contracted-out R&D rules that changed who may claim, restrictions on overseas externally provided workers and subcontractors, and a PAYE/NIC cap on payable credits.

What we do for you

• Eligibility review against the BEIS/DSIT guidelines — advance, uncertainty, competent professional, systematic approach.
• Claim notification to HMRC within the six-month window where required.
• Project-by-project technical narratives written with your technical staff.
• Cost analysis: staffing, EPWs, subcontractors, consumables, software, data and cloud costs, clinical trial volunteers.
• Additional Information Form completed and submitted before the CT600 — without it, the claim is removed.
• Full corporation tax computation, loss and carry-forward modelling, and interaction with capital allowances and the patent box.
• HMRC compliance-check handling from first letter to closure.

Rates and rules as at July 2026, for periods beginning on or after 1 April 2024. R&D legislation changes frequently; we confirm the position for your specific accounting period before any claim is made.

Frequently asked questions

Does my company actually qualify for R&D tax relief?

Only if it sought an advance in science or technology by resolving scientific or technological uncertainty that a competent professional in the field could not readily deduce. Commercial novelty, a new market or a clever business model do not qualify, however innovative they feel. We test this honestly at the outset.

What is the merged RDEC scheme worth?

The merged scheme credit is 20% of qualifying expenditure. It is taxable, so the net benefit after corporation tax is typically in the region of 15% of qualifying spend, depending on your CT rate.

What is ERIS and do we qualify?

Enhanced R&D Intensive Support is for loss-making SMEs whose qualifying R&D expenditure is 30% or more of total expenditure. It gives a 186% deduction and a payable credit of up to 14.5% of the surrenderable loss — up to around 27% of qualifying spend.

What is claim notification and why does it matter?

Companies that are new claimants, or that have not claimed in the previous three years, must notify HMRC of an intention to claim within six months of the end of the accounting period. Miss it and the claim is invalid, no matter how good the underlying R&D was. It is the deadline we see missed most often.

What is the Additional Information Form?

A mandatory digital submission that must reach HMRC before the corporation tax return containing the claim. It sets out the projects, the qualifying costs, the competent professional and the agent involved. A claim filed without it is removed from the return.

How likely is an HMRC enquiry?

Materially more likely than a few years ago — HMRC has substantially expanded its R&D compliance resource. A well-evidenced claim usually passes without difficulty; a thin one usually does not. We prepare every claim on the assumption it will be read.

Can you review a claim another adviser prepared?

Yes. We regularly review historic claims for exposure, and can amend or withdraw where necessary. Disclosing a problem before HMRC finds it materially reduces penalties.