Does your work qualify?
The test isn’t “is it clever?” — it’s whether you sought an advance in science or technology by tackling uncertainty a competent professional couldn’t readily resolve. It applies well beyond labs: bespoke software, novel engineering, improved manufacturing processes and materials development can all qualify. Routine work, cosmetic changes, or simply using existing technology in the normal way do not.
How the relief works now
For accounting periods beginning on or after 1 April 2024, most companies claim under the merged R&D scheme — an above-the-line expenditure credit — with additional support for loss-making, R&D-intensive SMEs. The cash benefit depends on your spend and whether you’re profit- or loss-making, so a proper calculation is essential rather than a rule of thumb.
The reporting hurdles (don't skip these)
- Additional Information Form — generally required before you file the Company Tax Return, detailing the projects and costs
- Advance notification — many new or returning claimants must tell HMRC they intend to claim, within a strict window
- Documentation — contemporaneous records of the uncertainty, the work and the costs; HMRC challenges weak claims hard
What costs typically count
- Staff costs for those working on the R&D
- A proportion of subcontractor and externally provided worker costs
- Consumables used up in the project — materials and some utilities
- Certain software, data and cloud-computing costs
Which costs qualify, and at what rate, has changed repeatedly — another reason to check the current rules for your period.
Claim it right, or not at all
Done properly, R&D relief is valuable and entirely legitimate. Done carelessly — or pushed by a “no win, no fee” firm making tenuous claims — it invites an enquiry. We assess whether your work genuinely qualifies and build a defensible claim. Call 0114 327 1480.