R&D tax credits allow companies investing in innovation to recover part of their development costs through the Corporation Tax system. Claims are reported within the Corporation Tax return and reviewed by HMRC based on the technical justification of the work and the treatment of qualifying expenditure.
Where development involves genuine technical uncertainty, both the activity and the related costs require careful assessment before submission. We review projects and cost treatment, so the claim is supported by clear technical and financial evidence.
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Review is typically required when:
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:
Technical and financial evidence must support the claim at the point of submission.
The correct R&D relief framework must be applied within the Corporation Tax return. Since April 2024, most companies claim under the merged R&D credit system. Earlier accounting periods may fall under the SME scheme or RDEC framework. HMRC provides enhanced relief where SME R&D intensity meets the required level.
Framework selection depends on:
The applicable framework determines how relief is calculated and reported within the Corporation Tax return. Incorrect classification may delay payment, reduce the amount of relief, or lead to HMRC enquiry.
Recent changes introduced by HM Revenue & Customs require companies submitting R&D claims to provide additional information. Claims must include an Additional Information Form, identify the senior officer responsible for the submission, and disclose any external advisers involved in preparing the claim.
These requirements help HMRC review eligibility and reduce incorrect submissions.
Under the merged R&D credit system introduced from April 2024, most companies receive a 20% credit on qualifying R&D expenditure. Because the credit is taxable, the net benefit after Corporation Tax is typically around 15% of eligible development costs.
Loss-making companies may receive part of the credit as a payable amount, subject to HMRC rules and caps linked to payroll taxes.
Corporation Tax reporting includes:
The return records qualifying costs and calculated relief for the accounting period.
Project details and cost treatment support the claim.
HMRC may review the claim and request further explanation.
Only costs directly linked to qualifying development activities are eligible. Staff salaries, subcontractor fees, software use, and testing materials commonly form part of the claim.
Qualifying costs include:
Cost classification directly affects HMRC review and acceptance.
In some cases, HMRC applies a PAYE and National Insurance cap to payable R&D credits. The cap links the amount of credit a company can receive to payroll taxes paid on employees involved in development activity. This rule helps ensure the claim reflects genuine UK-based R&D work.
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:
Clear documentation reduces the risk of HMRC enquiry or adjustment.
HMRC reviews R&D claims based on technical explanation and cost evidence. Weak or incomplete documentation often leads to enquiry or reduced relief.
Clear technical and financial records support the reported R&D claim. Where HMRC opens a review, further explanation may be required to confirm eligibility and cost treatment.
HMRC may open a compliance check after submission.
R&D claims must fall within the Corporation Tax amendment period. HMRC rejects claims submitted after the deadline.
Timing depends on:
Companies usually have two years from period end.
The claim may be included in the original return or submitted through amendment.
Early review helps prevent delay or HMRC enquiry.
“The transaction history was reconstructed properly, and the gain was calculated in line with HMRC crypto guidance. The disclosure was structured correctly before submission.”
Crypto Investor, Manchester
“Multiple exchanges and staking rewards made the position complex, but everything was reviewed and reported accurately. The approach was controlled and technically sound.”
Private Investor, Birmingham
“Historic crypto activity was corrected without escalation. The calculations were clearly set out, and the filing was managed efficiently.”
Consultant, London
Related tax advisory services frequently required alongside R&D claims.
Review and preparation of Corporation Tax submissions
Align personal and company tax decisions
Planning tax on business asset disposals
Representation during HMRC enquiries and reviews
Tax planning for overseas income and expansion
Claim relief on qualifying business investment
