R&D tax credits

Incentivising UK companies to invest in innovation

Helping you navigate the complexities of R&D tax incentives

We support innovative clients through the various stages of their business lifecycle. Our experts focus on these key stages from a tax perspective where we often find specific tax advice is required.

Each company’s needs are unique. Therefore, we can provide flexible services tailored to meet your exact requirements. Our  advisors will help you identify which incentive is appropriate for your company and will work with you to prepare and submit your research and development (R&D) claim.

In recent years, research and development (R&D) tax incentives have been subject to an extensive review by the Government, so as to ensure they remain fit for purpose and that valuable funding remains accessible. For accounting periods beginning on or after 1 April 2024, the current small and medium enterprise (SME) scheme and research and development expenditure credit (RDEC) will be merged into a single R&D regime.

HMRC has increased the level of scrutiny it applies to R&D tax relief claims as part of its attempts to tackle error and fraud in R&D claims.

With as many as 20% of R&D claims receiving enquiries from HMRC surrounding the eligibility of a claim for R&D relief, it is more important than ever that a company takes steps to ensure robust claims are prepared and submitted.

R&D tax relief credits

R&D tax relief credits offer valuable cash flow boosts through reductions in corporation tax liabilities and tax credit repayments. This allows companies to continue investing in R&D. There has been a sustained period of change and complexity, with HMRC undertaking a significant increase in audit activity regarding R&D claims, as well as making major changes to the overall R&D scheme which are likely to affect all claimants in one way or another.

The enterprise investment scheme

The Enterprise Investment Scheme (EIS) provides UK tax advantages to those individuals who make equity investments in qualifying companies. Similarly to R&D tax credits, HMRC are increasing the amount of time spent on EIS compliance matters, driving up the cost of raising tax advantaged equity funding.

Innovative businesses usually rely heavily on talented individuals who need to be attracted, retained and rewarded appropriately. Share schemes can be used to achieve this. Establishing an equity reward scheme which is effective from a tax perspective is typically a major part of the building a successful leadership team.

The Patent Box

The Patent Box taxes qualifying profits arising from the development and exploitation of patents at a lower rate than the mainstream corporation tax rate. Whilst this is largely seen as a relief aimed at major multinational corporations, we are seeing an increasing number of SME clients look more closely at claiming relief under the Patent Box.

Our latest R&D tax credits advice

A close up picture two hands poised over a laptop with the blurred image of three colleagues stood in the background.

What do the latest figures tell us about the current R&D landscape?

3 October 2024

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One man tests out his latest technological innovation while a second man writes down the data.

Patent box

11 September 2024

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A person is holding up a piece of A3 paper with Innovation and various drawings written on it.

New R&D pre-notification requirements

17 July 2024

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One man tests out his latest technological innovation while a second man writes down the data.

April 2024 merged scheme – what’s it all about?

28 May 2024

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A laptop is placed on a table while a woman checks her phone for an email.

R&D – the need for detailed record-keeping

28 May 2024

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A close-up view of a row of test tubes filled with food samples, with a blurred portrait of a laboratory worker in the background.

R&D tax relief – changes from 8 August and update

31 July 2023

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Don't get caught out by new R&D tax credit rules

7 January 2023

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Tax webinar recording – investigations & R&D tax relief

20 October 2021

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Meet our R&D tax credits experts

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We can advise if you are thinking about making a claim or are struggling with the claims process.