R&D tax relief is one of the most valuable incentives available to innovative UK businesses. It rewards companies that invest in developing new products, processes or services by reducing their tax bill or providing a cash benefit.
What Qualifies as R&D?
For R&D tax relief, qualifying work must seek an advance in science or technology and overcome genuine uncertainty that a competent professional could not easily resolve. Many companies underestimate how much of their day-to-day problem-solving can qualify.
What Costs Can Be Claimed?
Eligible costs typically include staff time, subcontractors, software and consumable materials used in the R&D. Identifying and apportioning these correctly is key to a robust claim.
The Changing Landscape
The R&D tax relief regime has been reformed in recent years, including changes to rates and the merging of schemes. Because the rules continue to evolve, it is important to check the current position before making a claim.
How TaxDigit Can Help
Our Guildford-based team helps SMEs identify qualifying projects and prepare well-supported R&D tax relief claims. Get in touch to make the most of your innovation.
R&D Tax Relief for SMEs: UK-Wide Support
R&D tax relief rewards innovative companies right across the United Kingdom, not just those near our Guildford head office. TaxDigit helps SMEs UK-wide identify qualifying work and make robust, well-evidenced R&D tax relief claims.
Our chartered certified accountants pinpoint eligible projects and costs, prepare the technical and financial narrative and submit claims that stand up to HMRC review. We support clients UK-wide, both remotely and from our Guildford office.
R&D tax relief has changed significantly, with the SME and RDEC schemes now merged for many companies and extra requirements such as the additional information form. HMRC scrutiny has also increased, so a vague or over-stated claim is a real risk. We focus on genuine qualifying activity and clear documentation, giving you the benefit you are entitled to without the exposure that comes from a weak claim.
How we help with R&D tax relief
- Identifying projects that meet the definition of R&D for tax purposes
- Calculating qualifying expenditure across staff, software and subcontractors
- Preparing the technical narrative and additional information form
- Applying the correct scheme following the merged R&D rules
- Supporting you if HMRC opens an enquiry into a claim
HMRC explains the current schemes here: HMRC guidance on R&D tax relief and the merged scheme.
Frequently Asked Questions
What is R&D tax relief?
It is a Corporation Tax incentive that rewards companies for resolving scientific or technological uncertainty, either by reducing the tax bill or, for loss-making companies, providing a payable credit.
Does my SME qualify for R&D tax relief?
Many do. The key test is whether your project sought an advance in science or technology and faced genuine uncertainty, rather than simply being new to your business.
Can TaxDigit help if I am not based in Guildford?
Yes. We prepare R&D tax relief claims for clients UK-wide, remotely and from our Guildford office.