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.
  • The company develops software, products, or technical processes
  • The claim includes staff, subcontractor, or software costs
  • Corporation Tax returns are prepared or amended
  • Earlier claims lack technical or financial documentation
  • HMRC opens or signals a compliance review
Confirm Eligibility

How Eligibility Is Assessed Under HMRC Criteria

Technical and financial evidence must support the claim at submission and may be reviewed by HMRC where clarification is required. Project records, technical objectives, and development evidence establish whether the activity qualifies.

Under HMRC guidance, R&D activity usually involves work that attempts to make advancement in science or technology and requires resolving technical uncertainty that a competent professional cannot easily solve. Qualifying activity commonly includes:

  • Software built to overcome technical limitations
  • Engineering or manufacturing process improvement
  • Prototype design, testing, and iteration
  • Internal systems developed to solve technical constraints
  • Experimental work with uncertain technical outcomes

Technical and financial evidence must support the claim at the point of submission. 

R&D Relief Framework (SME, RDEC, and Merged Scheme)

SME Scheme

  • Small/medium companies
  • Enhanced relief available
  • Higher intensity R&D support

RDEC Scheme

  • Large companies / outsourced R&D
  • Fixed credit mechanism
  • Simplified calculation

Unified System (Post 2024)

  • Most companies now fall here
  • Unified approach
  • Standardised relief calculation

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:
  • Review of technical activity against HMRC criteria
  • Identification and classification of eligible costs
  • Preparation of technical narratives supporting the work performed
  • Calculation of relief within Corporation Tax reporting
  • Documentation prepared for HMRC review
  • Representation during HMRC enquiry where required
  • Validation of R&D project scope against HMRC eligibility guidelines
  • Alignment of claim with current HMRC compliance framework

Clear documentation reduces the risk of HMRC enquiry or adjustment.

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Industries and Businesses We Support

Growing technology companies

  • Building new software or improving existing systems
  • Creating tools that solve technical problems
  • Testing new platforms or digital products

Manufacturing and engineering projects

  • Designing new production methods
  • Building and testing prototypes
  • Improving how products are made

SMEs investing in innovation

  • Paying staff to work on development projects
  • Hiring subcontractors to support R&D
  • Using materials in testing and experimentation

Businesses facing HMRC enquiries

  • Claims with weak technical explanations
  • Missing cost evidence in past submissions
  • Reviews triggered by HMRC enquiries

Related R&D Tax Guides

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Frequently Asked Questions About R&D Tax Credit

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.

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

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.

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

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

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

impact.

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

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

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

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.

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