R&D Tax Incentives

The UK’s R&D Tax Incentive schemes are designed to encourage private sector investment in innovation. However, complexities in the schemes can make navigating the claims process challenging.

The R&D Tax Incentive regime

Pre-notification requirement - Companies must submit a pre-notification form to HMRC to indicate their intention to claim R&D tax relief. This requirement applies to all first-time claimants and certain companies that have claimed previously. Failure to pre-notify within six months of the end of the accounting period will invalidate any potential claim for that period.

Single merged R&D scheme - Previously, there were two R&D schemes under which eligible companies could claim, with the applicable rate depending on factors such as the size of the business and the contractual and commercial arrangements related to the R&D activities undertaken. For accounting periods starting from 1 April 2024, all companies, regardless of size, will claim under a Single Merged R&D Scheme.

The switch to the Single Merged Scheme will carry changes to the way funded and subcontracted R&D activities are treated.

Enhanced support for R&D-intensive companies - Loss-making companies that meet the criteria for being R&D-intensive may qualify for Enhanced R&D Intensive Support (ERIS), with eligible companies able to benefit from a higher rate of relief than under the Single Merged Scheme. 

How we can help

Our specialist Innovation Taxes team can help you navigate the complexities of R&D tax and ensure that your company is claiming the relief it’s entitled to. We offer a range of R&D Tax Incentive Services, from feasibility studies to full claim preparation.

Our team has extensive experience in assisting clients ranging from early-stage tech start-ups to multinational, publicly listed corporations across a range of sectors.

Our R&D Tax Incentive services include:

• End-to-end claim preparation - fully outsourced claim preparation, including assistance with the pre-notification process.
• Funding and commercial impact analysis - evaluation of funding arrangements and commercial terms to determine their effect on claim eligibility and associated tax relief.
• Expenditure identification and methodology development - tailored methodologies for identifying and apportioning qualifying R&D expenditure.
• Grant advisory services - support with grant applications and modelling the interaction between grant funding and R&D Tax Incentives to optimise net support.
• Contractual arrangement reviews - analysis of commercial terms in contractual R&D projects to assess their impact on relief eligibility.
• Ownership and investment structuring advice - guidance on how changes in ownership, venture capital investments, and shareholder agreements may affect R&D tax claims.

Get in touch

If you would like to learn more on how our expert team can help maximise your R&D tax relief and ensure compliance with the latest HMRC requirements, please do not hesitate to reach out, or complete our short enquiry form.