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R&D Tax Credits for Companies

Building something technically difficult? Your company may be able to claim tax relief on the cost. We check whether your work qualifies and prepare a claim you can stand behind.

At a glance

R&D tax relief claims for UK companies, led by Rob Osborne CTA, who examined R&D claims as an HMRC tax inspector.

Who this is for

•Technology and software companies building new products
•Start-ups spending on development, including loss-making companies
•Engineering, manufacturing and life sciences businesses
•Companies that have claimed before and want a second look

What is involved

We talk through your projects, tell you honestly whether they qualify and what the claim is likely to be worth, then prepare the claim and the detailed information HMRC requires. Our fee is confirmed before any work starts.

Why that matters

We have been on the other side of these claims.

Before advising companies, Rob Osborne examined R&D claims as an HMRC tax inspector. He knows what a claim needs to show to be accepted, which descriptions are convincing and which invite questions.

That is why we write each claim so that every project and every figure can be explained if HMRC asks. If your work does not qualify, we will tell you so before you spend money on a claim.

Your situation

Where you are now, and what we do.

You have never claimed

Many companies doing real development work have never looked at whether it qualifies. The work does not need to be in a laboratory: it has to be a project that tries to achieve an advance in science or technology by resolving technical uncertainty.

What we do

You tell us, in plain terms, what you have built or tested over the period. We ask the questions that bring out the technical challenges.
We decide with you which projects are likely to qualify, and which are routine work that does not. We say so plainly if the answer is that nothing qualifies.
We identify the costs that can be included, from your payroll, subcontractors, software and consumables, and estimate the value of the claim before you commit.
We prepare the claim, including the additional information form that HMRC requires for each accounting period, and check whether you need to tell HMRC in advance that you intend to claim.
The claim goes in with your Company Tax Return. We write it so that every figure and every project description is supported, and we deal with any questions from HMRC.

You build software, AI or other technology

Software companies often have qualifying work, but also a lot of work that does not qualify: routine development, applying existing tools in familiar ways, and design or user experience changes. The line is drawn project by project.

What we do

We speak to whoever leads the technical work, and look at what was built and what was uncertain at the start.
For each project we write down the baseline (what was already possible), the advance you were seeking, and the technical uncertainties and how you set about resolving them. HMRC's additional information form asks for exactly this.
We separate qualifying time from the rest of each person's time, so staff costs are based on what was actually done.
We include software and cloud costs only where they were used for the R&D.
You see the full claim before it is filed, and you can ask us to explain any line.

You are a young company making a loss

Loss-making companies spending a high proportion of their costs on R&D can be eligible for an enhanced scheme, which can produce a cash payment. Other companies claim under the merged scheme. A company can choose the merged scheme even if it is eligible for the enhanced one, but it cannot claim under both for the same expenditure.

What we do

We check whether you pass the R&D intensity test, which looks at qualifying R&D spend as a proportion of total spend, and whether you made a trading loss before the extra deduction.
Where both schemes are open to you, we compare them on your own numbers, so you can see the difference before choosing.
We take into account the cap that links the relief to your PAYE and National Insurance liabilities.
We prepare the claim, tell you the expected cash or tax effect and when it is likely to arrive, and file it with your return.

You have claimed before and want a second look

You may have used another adviser, prepared the claim yourself, or had questions from HMRC about a claim already made. HMRC also has a route for correcting R&D relief that was claimed in error, so a mistake can be put right.

What we do

You send us the claim, the additional information form and any letters from HMRC. We read them in confidence.
We check the projects, the costs and the figures against what actually happened, and tell you where the claim is strong and where it is exposed.
If HMRC has asked questions, we draft the replies and deal with HMRC for you.
If something has been claimed that should not have been, we explain the options and, where needed, correct it with HMRC in the way that protects your position.

What can be included

Only the costs listed in HMRC's guidance can be claimed. For accounting periods beginning on or after 1 April 2024, these include:

Salaries, bonuses, employer pension and National Insurance for staff, for the time they spend on the project
Workers supplied by an agency or staff provider, and subcontracted R&D, within the rules on how much of the payment counts
Consumables used up in the project, such as materials, power and water
Software licences used for R&D
Cloud computing and data costs

Capital expenditure, land, patents and rent are not included.

Choosing an adviser

How your adviser is paid matters.

Some firms charge a percentage of the tax relief you receive. Some of them are reputable. But a percentage fee rewards the biggest claim, not the most accurate one, and that can push a firm in the wrong direction. The claim is made on your company's tax return, so your company is responsible for it.

Whoever you choose, ask how they are paid, who writes the technical descriptions, who will deal with HMRC if it asks questions, and whether they will tell you when a project does not qualify. We agree our fee with you before we start.

A word from Rob

Rob Osborne CTA

Chartered Tax Adviser and former HMRC Senior Tax Inspector

When I was a tax inspector, I examined R&D claims. The claims that stood up were the ones where the company could explain, in plain terms, what was uncertain and how they set about solving it. That is how I approach every claim we prepare.
Rob Osborne CTA, Director

Latest insights

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FAQ

Frequently asked questions

What is R&D tax relief?

Tax relief for UK companies that spend money on research and development. It can reduce your Corporation Tax bill, or in some cases give you a cash payment, based on the qualifying costs of projects that seek an advance in science or technology.

Does my company qualify?

It depends on the projects, not the industry. The question is whether the work sought to resolve scientific or technological uncertainty that a competent professional could not readily resolve. We review your work and give you a straight answer, including when the answer is no.

Why should I be careful about firms that charge a percentage of the relief?

Some firms charge a percentage of the tax relief you receive. Some of them are reputable. But a percentage fee rewards the largest claim, not the most accurate one, which can push a firm to include costs or projects that would not stand up. The claim is made on your company's tax return, so the company is responsible for it, not the adviser. Ask any firm how it is paid, who writes the technical descriptions, who will deal with HMRC if it asks questions, and whether it will tell you if your project does not qualify.

What does HMRC require with a claim?

An additional information form for each accounting period, submitted before or on the same day as the Company Tax Return. HMRC says that if the form is not submitted, the claim will not be accepted. It covers the company, the qualifying costs and details of each project. In some cases you must also tell HMRC in advance that you intend to claim.

How far back can I claim?

There is a time limit on claims, so earlier periods may still be open. We check which periods you can still claim for.

Do the rules change?

They have changed in recent years, and can change again, so we check the current rules for the period you are claiming for rather than relying on what applied before.

What if HMRC asks questions about my claim?

That is when the quality of the original claim matters. We deal with HMRC for you, and explain the reasoning behind the projects and the costs.

How much will it cost?

We confirm the fee before any work starts, and tell you the likely value of the claim first so you can judge whether it is worthwhile.

Is this confidential?

Yes. We handle everything in strict confidence.

Tell us what you are building

Send us a few lines about your projects. We will tell you honestly whether they are likely to qualify, and confirm the fee before any work starts.

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