R&D activities must aim to make an advance in science or technology by resolving scientific or technological uncertainties. This can include creating new products, processes, services, or improving existing ones.

Any UK limited company that is subject to Corporation Tax and is undertaking qualifying R&D activities can claim R&D tax relief. This includes companies of all sizes, from startups to large enterprises.

Eligible costs include payroll costs for employees involved in R&D, consumables used in the R&D process, software used directly in R&D activities, and subcontractor costs.

To apply for R&D tax relief, identify eligible projects, maintain detailed records of R&D activities and costs, calculate the total eligible R&D expenditure, and include the R&D claim in your company’s Corporation Tax return, with supporting documentation.

Detailed project descriptions, evidence of scientific or technological uncertainties addressed, records of staff costs, consumables, software, subcontractor expenses, timesheets, work logs, and financial records.

HMRC typically processes R&D tax relief claims within 28 days, but the time frame can vary depending on the complexity of the claim and the thoroughness of the documentation provided.

Yes, loss-making companies can claim R&D tax relief and may be eligible for a payable cash credit, which can provide vital cash flow for further R&D activities.

Yes, SMEs can claim R&D tax relief. They can benefit significantly from the SME R&D tax relief scheme, which offers higher rates of relief compared to the scheme for large companies.

R&D tax relief claims are made annually as part of your Corporation Tax return. You can claim for all eligible R&D activities conducted during your accounting period.