R&D Tax Credits

Should my company claim R&D tax relief?

Claim only if you have a genuine scientific or technological uncertainty, not a commercial one, and you can evidence it. Skip the claim — and this page — if a salesperson has promised a refund before reading your technical work. HMRC has tightened the scheme; weak claims cost time and reputation.

A competent adviser will say no as often as yes. Ask who writes the technical narrative and whether they will defend it in an enquiry. Qualifying expenditure rules are on GOV.UK — do not copy a LinkedIn infographic.

Which R&D scheme applies now?

For accounting periods beginning on or after 1 April 2024, most companies claim under the merged R&D expenditure credit scheme. GOV.UK states the expenditure credit rate is 20%. Loss-making R&D-intensive SMEs may instead claim enhanced R&D intensive support (ERIS). Confirm current eligibility on GOV.UK before you act.

Older SME and RDEC rules still matter for earlier accounting periods that remain open. Do not apply a 2023 rate to a 2025 period. We do not invent net-of-tax benefit percentages on this page; corporation tax on the credit depends on your position.

How much does an R&D tax credit claim cost?

Specialists commonly charge £1,500–£5,000 per claim or 10–20% of the tax benefit on a success-fee basis. Some accountants include light R&D in an advisory package. We do not put a fake monthly fee on this page — typicalCost is unpublished on purpose.

Percentage fees look cheap until the claim is large. Fixed fees look dear until an enquiry starts. Get the engagement letter in writing, including who owns the working papers if you leave.

What records does HMRC expect?

A contemporaneous technical narrative, a cost breakdown that follows the qualifying expenditure rules, and evidence that the uncertainty was scientific or technological. Reconstructed stories after year-end are how claims fail. Your accountant cannot invent a lab book.

Subcontractor and overseas cost rules have changed under the merged scheme. Ask the adviser to walk through those before they start. If they cannot, they are not the adviser.

What happens if HMRC enquires into the claim?

You (or your agent) have to explain the project and the numbers. Enquiry defence is often extra to a success-fee claim letter. Ask what the fee covers if HMRC writes. A claim that cannot be defended should not be filed.

We are not HMRC and we do not process claims. Comparison listings here are firms, not a filing service.

Should I use my year-end accountant or a specialist?

Use your year-end accountant if they have filed claims like yours and will still be there next year. Use a specialist if they will not. Do not run two uncoordinated claims on the same period. The CT600 and the R&D claim have to match.

Success-fee shops that disappear after filing are a known problem. Named chartered accountants with a practising certificate are slower to promise and easier to find later.

How should I choose an R&D adviser?

Ask for a no-fee eligibility view before any percentage is discussed. Check ICAEW, ACCA or CIOT. Read the enquiry clause. Skip anyone who quotes a refund before they have read a technical summary.

Compare a fixed fee with a capped success fee. Confirm they will work with your year-end accountant. Confirm current scheme rules against GOV.UK, not a brochure.

1. Write a one-page description of the technological uncertainty
2. Ask for a written yes/no on eligibility before any success fee
3. Compare fixed fee vs percentage, including enquiry defence
4. Check the firm on a professional-body register