R & D Tax Credit Claims UK

Q: What changed in UK R&D tax relief rules?

For applicable accounting periods beginning on or after 1 April 2024, the previous SME and RDEC schemes were replaced by a merged scheme. Most eligible companies now claim under a single 20% credit framework.

Q: How are R&D tax credits reported in Corporation Tax?

R&D tax credits are reported in the Corporation Tax return, known as CT600, with a technical explanation and cost breakdown. HMRC reviews the submission before confirming relief.

Q: Can a UK branch of an overseas company claim?

Yes. A UK permanent establishment paying Corporation Tax may claim if qualifying R&D work is carried out in the UK and the applicable eligibility requirements are met.

Q: What counts as qualifying R&D work?

Qualifying R&D work seeks an advance in science or technology and involves resolving scientific or technological uncertainty.

Q: What costs can be claimed?

Eligible costs may include staff wages, qualifying subcontractor costs, software and materials directly used in qualifying R&D projects, subject to the applicable HMRC rules.

Q: Do small companies qualify?

Yes. SMEs may qualify when they invest in innovation involving scientific or technological advancement and uncertainty.

Q: What is Enhanced R&D Intensive Support?

Enhanced R&D Intensive Support provides additional support for eligible loss-making SMEs with a high proportion of qualifying R&D expenditure, subject to the applicable intensity threshold.

Q: How are R&D tax credits submitted to HMRC?

Companies submit claims through their Corporation Tax return and HMRC's Additional Information Form. The submission includes a technical explanation and cost breakdown for the qualifying work.

R & D Tax Credit

An R&D Tax Credit is a UK government incentive that allows eligible businesses to claim tax relief on qualifying research and development expenditure. It can apply to businesses developing new products, improving existing processes, creating software, or overcoming technological uncertainties.

Identifying qualifying R&D activities and calculating eligible costs correctly is essential for a successful claim. HMRC has increased its focus on the accuracy and quality of R&D tax credit claims, making clear technical evidence and appropriate cost calculations more important than ever.

Our R&D tax credit advisory services help businesses assess their eligibility, identify qualifying activities and expenditure, prepare supporting evidence, and submit accurate claims to HMRC.

When R&D Tax Credit Advisory Is Required?

HMRC reviews the technical basis and cost treatment of each R&D claim and may request clarification where eligibility or cost classification requires further explanation in your submission. Claims without clear technical support or cost validation face a high risk of challenge.

When It
Applies:

How the Claim Position Is Reviewed and Prepared?

Technical activity and cost treatment must support the R&D claim reported to HMRC. We review development work, confirm qualifying costs, and prepare supporting technical and financial records before submission. This includes:

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SMEs Investing in Innovation

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How Legend Fusions Manages Your R&D Tax Credit Claim?

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Frequently
Asked Questions

Here’s the Answer to Some Frequently
Asked Questions.

01.How much can a business claim through R&D tax credits?

Most companies receive a 20% credit on qualifying R&D costs, equal to roughly 15-16% after tax. Extra support is also available for eligible R&D-intensive SMEs.

02.What changed in UK R&D tax relief rules?

Since April 2024, SME and RDEC schemes have merged into one system. Most companies now claim under a single 20% credit framework.

03.How are R&D tax credits reported in Corporation Tax?

R&D tax credits are reported in the Corporation Tax return (CT600) with technical explanation and cost breakdown. HMRC reviews the submission before confirming relief.

04.Can a UK branch of an overseas company claim?

Yes. A UK permanent establishment paying corporation tax can claim if qualifying R&D work is carried out in the UK.

05.What counts as qualifying R&D work?

Any work that solves the technical problem or creates scientific or technological advancement in the industry.

06.What costs can be claimed?

Eligible costs include staff wages, subcontractors, software, and materials directly used in qualifying R&D projects.

impact.

07.Can you advise on pension tax planning?

Yes. Pension contributions and annual allowances are reviewed to manage current liabilities and
long-term tax efficiency.

08.Do small companies qualify?

Yes. Many SMEs qualify if they invest in innovation that involves technical risk or market gaps.

09.What is Enhanced R&D Intensive Support?

It is extra support for loss-making SMEs with high R&D spend, offering a larger payable credit if thresholds are met.

10.How are R&D tax credits submitted to HMRC?

Companies submit claims through the Corporation Tax return (CT600) and the HMRC Additional Information Form. These include technical explanation and cost breakdown for qualifying work.

Confirm Your R&D Tax Credit Position Before Submission

The R&D claim becomes established when the Corporation Tax return is submitted. Eligibility and cost treatment determine what HMRC accepts. Early review reduces the risk of delay or enquiry.

R & D Tax Credit

When R&D Tax Credit Advisory Is Required?

When It Applies:

How the Claim Position Is Reviewed and Prepared?

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4.9/5

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Reviews From Our UK Clients

Industries and Businesses We Support

Growing Technology Companies

Manufacturing and Engineering Projects

SMEs Investing in Innovation

Businesses Facing HMRC Enquiries

Related Tax & Advisory Service

How Legend Fusions Manages Your R&D Tax Credit Claim?

01

Eligibility review

02

Cost classification.

03

Technical narrative and evidence.

04

Submission & CT Reporting

05

Enquiry Representation

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