Research and Development (R&D) tax relief supports companies that invest in innovation across science and technology. The scheme offers generous tax benefits in exchange for genuine research activity. Therefore, asking can you claim R&D relief is an important first step for any innovative business.
What is R&D tax relief?
R&D tax relief encourages companies to push boundaries in science and technology. It rewards businesses that take on technical challenges and seek meaningful advances. However, not every project will qualify under the scheme. Consequently, businesses should carefully assess their activities before submitting a claim.
Understanding can you claim R&D relief helps you determine whether your projects meet HMRC’s specific requirements. Additionally, it ensures you approach the process with confidence and clarity from the outset.
Who can claim?
Only companies chargeable to UK Corporation Tax can qualify for R&D relief. In addition, the company must undertake a project that aims to achieve an advance in science or technology. This requirement applies regardless of the company’s size or sector.
Therefore, if your business pays Corporation Tax and carries out qualifying research, you may be eligible. Furthermore, both profitable and loss-making companies can benefit from making a claim.
What types of activities qualify?
HMRC sets clear criteria for qualifying R&D activities. For tax purposes, eligible projects include:
- Creating new processes, products, or services
- Making appreciable improvements to existing ones
- Using science and technology to duplicate existing processes in a new way
Importantly, R&D activities can qualify for tax relief even if the project ultimately failed. This means unsuccessful outcomes do not prevent you from claiming. Moreover, since April 2023, mathematical advances also qualify as scientific advances for R&D tax purposes.
However, the advance must go beyond simply improving processes for your own business. It should contribute to overall knowledge or capability within the relevant field. Therefore, demonstrating a genuine technical uncertainty is essential.
Keeping the right records
Strong record-keeping plays a vital role in supporting any R&D claim. Businesses should maintain clear documentation throughout each project. Specifically, you should record:
- The technical uncertainties you faced
- The work you undertook to resolve them
- The successes and failures encountered during the project
These records help demonstrate that your activities meet HMRC’s requirements. Furthermore, they strengthen your claim if HMRC requests additional information. Consequently, building good habits around documentation saves time and reduces risk.
Identifying qualifying expenditure
Once you establish eligibility, the next step involves identifying qualifying expenditure. This includes costs directly related to your R&D activities. Common examples include staff costs, software, consumable materials, and certain subcontractor fees.
Accurately categorising your expenditure ensures you maximise your claim. Additionally, it helps you avoid including ineligible costs that could delay the process. Therefore, working with an experienced adviser can make a significant difference.
Can you claim R&D relief for your business?
Many companies carry out qualifying activities without realising they are eligible. Therefore, reviewing your current and past projects could reveal valuable opportunities. Even if you have not claimed before, you may be able to submit claims for previous accounting periods.
Asking can you claim R&D relief is the starting point for unlocking potential tax savings. Taking action now ensures you do not miss out on relief you are entitled to.
Get in touch
If you are unsure whether your business qualifies, our team can help you find out. We can review your projects, identify eligible expenditure, and manage the entire claims process.
Contact us today to explore whether R&D tax relief could benefit your business.
Source: HM Revenue & Customs Tue, 09 Jun 2026 00:00:00 +0100
