{"version":"1.0","provider_name":"Legend Fusions UK","provider_url":"https:\/\/legendfusions.com\/uk","author_name":"Faizan","author_url":"https:\/\/legendfusions.com\/uk\/author\/faizan\/","title":"R&D Tax Credit - Legend Fusions UK","type":"rich","width":600,"height":338,"html":"<blockquote class=\"wp-embedded-content\" data-secret=\"9hEjsRLJCH\"><a href=\"https:\/\/legendfusions.com\/uk\/rd-tax-credit\/\">R&#038;D Tax Credit<\/a><\/blockquote><iframe sandbox=\"allow-scripts\" security=\"restricted\" src=\"https:\/\/legendfusions.com\/uk\/rd-tax-credit\/embed\/#?secret=9hEjsRLJCH\" width=\"600\" height=\"338\" title=\"&#8220;R&#038;D Tax Credit&#8221; &#8212; Legend Fusions UK\" data-secret=\"9hEjsRLJCH\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" class=\"wp-embedded-content\"><\/iframe><script>\n\/*! This file is auto-generated *\/\n!function(d,l){\"use strict\";l.querySelector&&d.addEventListener&&\"undefined\"!=typeof URL&&(d.wp=d.wp||{},d.wp.receiveEmbedMessage||(d.wp.receiveEmbedMessage=function(e){var t=e.data;if((t||t.secret||t.message||t.value)&&!\/[^a-zA-Z0-9]\/.test(t.secret)){for(var s,r,n,a=l.querySelectorAll('iframe[data-secret=\"'+t.secret+'\"]'),o=l.querySelectorAll('blockquote[data-secret=\"'+t.secret+'\"]'),c=new RegExp(\"^https?:$\",\"i\"),i=0;i<o.length;i++)o[i].style.display=\"none\";for(i=0;i<a.length;i++)s=a[i],e.source===s.contentWindow&&(s.removeAttribute(\"style\"),\"height\"===t.message?(1e3<(r=parseInt(t.value,10))?r=1e3:~~r<200&&(r=200),s.height=r):\"link\"===t.message&&(r=new URL(s.getAttribute(\"src\")),n=new URL(t.value),c.test(n.protocol))&&n.host===r.host&&l.activeElement===s&&(d.top.location.href=t.value))}},d.addEventListener(\"message\",d.wp.receiveEmbedMessage,!1),l.addEventListener(\"DOMContentLoaded\",function(){for(var e,t,s=l.querySelectorAll(\"iframe.wp-embedded-content\"),r=0;r<s.length;r++)(t=(e=s[r]).getAttribute(\"data-secret\"))||(t=Math.random().toString(36).substring(2,12),e.src+=\"#?secret=\"+t,e.setAttribute(\"data-secret\",t)),e.contentWindow.postMessage({message:\"ready\",secret:t},\"*\")},!1)))}(window,document);\n\/\/# sourceURL=https:\/\/legendfusions.com\/uk\/wp-includes\/js\/wp-embed.min.js\n<\/script>\n","description":"UK R&amp;D Tax Credits Advisory R&amp;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. Eligibility and qualifying expenditure reviewed before submission Technical and financial documentation prepared for HMRC review Claims structured and supported during HMRC enquiry Book a Consultation Do you need to file What we handle How it works Reviews FAQs Legend Fusions is the UK advisory brand evolved from Legend Financial &amp; Tax Advisers, unifying tax, compliance, and advisory services under one international group. Serving companies across London, Bolton, Milton Keynes and throughout the UK. When R&amp;D Tax Credit Advisory Is Required HMRC reviews the technical basis and cost treatment of each R&#038;D claim and may request clarification where eligibility or cost classification requires further explanation. Claims without clear technical support or cost validation face a high risk of challenge. Review is typically required when: 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 Years + Reviewing and preparing R&#038;D tax credit claims within UK Corporation Tax reporting 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&amp;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.\u00a0 R&amp;D Relief Framework (SME, RDEC, and Merged Scheme) The correct R&amp;D relief framework must be applied within the Corporation Tax return. Since April 2024, most companies claim under the merged R&amp;D credit system. Earlier accounting periods may fall under the SME scheme or RDEC framework. HMRC provides enhanced relief where SME R&amp;D intensity meets the required level. Framework selection depends on: Company size and ownership Type and location of R&amp;D costs Accounting period and claim timing Whether R&amp;D work is subcontracted or externally funded 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.\u00a0 New HMRC Documentation Requirements Recent changes introduced by HM Revenue &amp; Customs require companies submitting R&amp;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.\u00a0 These requirements help HMRC review eligibility and reduce incorrect submissions.\u00a0 Financial Benefit From R&amp;D Tax Credits Under the merged R&amp;D credit system introduced from April 2024, most companies receive a 20% credit on qualifying R&amp;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.\u00a0 How R&amp;D Claims Are Reported Through Corporation Tax R&#038;D tax credits are reported in the Corporation Tax return (CT600). Technical explanation and cost records support the reported R&#038;D claim. Corporation Tax reporting includes: Corporation Tax return (CT600) The return records qualifying costs and calculated relief for the accounting period. Additional Information Form Project details and cost treatment support the claim. HMRC review after submission HMRC may review the claim and request further explanation. What Costs Qualify for R&amp;D Tax Credits 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: Staff salaries for development work Subcontractor costs supporting technical activity Software and cloud costs used during development Materials consumed in testing and prototyping Cost classification directly affects HMRC review and acceptance. In some cases, HMRC applies a PAYE and National Insurance cap to payable R&amp;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&amp;D work.\u00a0 How the Claim Position Is Reviewed and Prepared Technical activity and cost treatment must support the R&amp;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 Clear documentation reduces the risk of HMRC enquiry or adjustment.\u00a0 HMRC Documentation and Enquiry Support HMRC reviews R&amp;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&amp;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.\u00a0\u00a0 When R&amp;D Tax Credit Claims Must Be Submitted or Amended R&amp;D claims must fall within the Corporation Tax amendment period. HMRC rejects claims submitted after the deadline. Timing depends on: Accounting period end date Companies usually have two years from period end. Corporation Tax reporting status The claim may be included","thumbnail_url":"https:\/\/legendfusions.com\/uk\/wp-content\/uploads\/2026\/03\/number-one-1.png","thumbnail_width":512,"thumbnail_height":512}