Your R&D Tax Relief Handled by Experts
At GrantUp, we specialise in navigating the complexities of R&D tax relief to maximise your claim while ensuring full compliance with HMRC’s evolving rules and legislation. From interpreting technical eligibility criteria to accurately identifying qualifying expenditure, we handle the intricate details, making the process smooth, stress-free, and fully optimised.
This UK government-backed incentive rewards companies investing in innovation, whether through developing new products, services, or processes, or enhancing existing ones. Eligible businesses can benefit via a reduced Corporation Tax bill or a cash credit, potentially reclaiming up to 27% of their qualifying R&D spend.
Why Expert Guidance Matters
Unlocking the full value of R&D tax relief demands more than just submitting figures, it requires a clear understanding of complex legislation, technical detail, and strategic claim structuring. At GrantUp, our expert team works closely with you to:
- Uncover all qualifying R&D activity
- Accurately calculate eligble costs
- Present your claim in a way that aligns with HMRC expectations.
We reduce the risk of audit, remove the administrative burden, and ensure you capture every opportunity. Beyond savings, our service empowers your business with the financial headroom to reinvest in innovation and future growth.
What exactly is R&D Tax Relief?
R&D Tax Relief is a UK government-backed incentive designed to reward businesses that invest in innovation. Whether you're developing new products, improving internal processes, or enhancing services, this scheme helps reduce the financial barriers to innovation by offering substantial tax benefits.
By lowering the cost of experimentation and development, R&D Tax Relief gives companies the freedom to take risks, explore new ideas, and accelerate growth. This is more than just a financial incentive, it's a catalyst for innovation, helping UK businesses stay competitive and forward-thinking.
Through the scheme, eligible companies can:
This incentive is not just about cutting costs it’s about giving your business the financial breathing room to innovate and grow.
Real Case Studies
Our clients have experienced significant benefits from our support in claiming research & development tax relief. Here are a few examples:
Helped Holistic AI unlock vital R&D tax relief by identifying and evidencing their eligible technical work, enabling them to accelerate development of their AI assurance platform and scale innovation in a rapidly evolving regulatory landscape.
Helped Combine AI secure R&D tax relief by evidencing their advanced work in machine learning and NLP, enabling them to accelerate innovation in AI-driven meeting productivity tools and scale their hybrid meeting assistant technology.
Who Is Eligible for R&D Tax Relief?
R&D Tax Relief is open to a wide range of UK-based companies, but eligibility is determined by HMRC’s specific criteria. To qualify, your project must involve a genuine attempt to achieve technological or scientific advancement—and address challenges that competent professionals in the field can’t easily resolve.
Key eligibility factors include:
- UK-Registered Companies: Your business must be subject to UK Corporation Tax.
- Technical Uncertainty: The project should aim to solve a problem where the outcome is not immediately clear or easily deduced.
- Applicable Across Industries: R&D can take place in any sector, with common examples in software development, manufacturing, engineering, pharmaceuticals, and environmental tech.
Company Size Matters:
- SMEs: Fewer than 500 staff, and within specific turnover or balance sheet thresholds, typically access more generous relief.
- Large Companies: Businesses above SME thresholds may still claim under the RDEC scheme, with different rules and benefit rates.
Not sure if you qualify?
Get in touch with our experts today for a free eligibility assessment—we’ll help you uncover hidden opportunities and guide you through every step of the process.
What Counts as R&D?
Determining whether your project qualifies for R&D Tax Relief isn’t always straightforward. HMRC’s definition is often vague and is highly technical but in essence, your work must aim to overcome scientific or technological uncertainty through experimentation, development, or innovation.
Examples of Qualifying Activities
- Developing New Products, Processes, or Services:
If you are creating something entirely new, whether it’s a product, a process, or a service, that aims to overcome a technical challenge, your work is likely eligible. - Modifying Existing Ones:
Even if you are not creating something from scratch, improving or modifying an existing product, process, or service can count. The key is that your modifications must involve overcoming technical hurdles or uncertainties.
The Nature of Innovation
- Risk and Uncertainty:
The process of R&D is inherently uncertain. Your project does not have to succeed to qualify, as long as you can demonstrate that you faced and attempted to overcome scientific or technological challenges. - Innovation Beyond Success:
Many successful R&D projects are built on trials and errors. Even if the final outcome isn’t a commercial success, the work you carried out to test new ideas is still considered valuable research.
Clear Examples
Imagine your company is developing a new type of eco-friendly packaging. You’re experimenting with materials that must be both sustainable and durable, while also ensuring the packaging meets safety and cost requirements. The technical unknowns and problem-solving involved here are exactly the kind of innovation HMRC is looking for.
Still unsure if your project qualifies?
Let us help. We’ll assess your activities, identify eligible work, and guide you in presenting a strong case to HMRC.
What Can You Claim for Research and Development?
R&D tax relief covers a wide range of costs directly associated with eligible projects, including:
Staff Expenses
Your employees are the heart of your R&D efforts. Costs you can claim include:
- Salaries or Wages paid to staff directly involved in R&D projects.
- National Insurance Contributions (NIC), which shows the contributions your business makes on behalf of your employees.
- Pension Contributions, these are payments made towards employee pensions related to the R&D work.
These expenses reflect the human effort and expertise that drive innovation.
Subcontractors and Freelancers
Sometimes, you need external expertise to complete an R&D project. Costs in this category include:
- Fees for Subcontracted Work, any payments made to other companies or professionals who contribute to your project.
- Freelance Costs, any charges for individual experts who help resolve technical challenges.
By including these costs, you ensure that all the work invested in your innovation is recognised.
Materials and Consumables
For many R&D projects, the materials and energy used are essential to the process. Eligible items include:
- Raw Materials, these are items that are directly used in the development process.
- Consumables, so any costs for heat, light, power, and other resources that support your project.
- Tools and Equipment can be also eligible, while not always directly claimable, some related costs might be included if they are essential for R&D.
Software Licences, Data, and Cloud Costs
In today’s digital world, much of R&D relies on modern technology:
- Software Licences - Costs for specialised software used in your research.
- Data Expenses - Fees related to acquiring or processing data for your project.
- Cloud Costs - Charges for cloud services that support your R&D activities.
How to Claim R&D Tax Relief
R&D tax relief has evolved—and so have the rules. For accounting periods beginning on or after 1 April 2024, most companies will claim under a new merged scheme, replacing previous separate regimes. The only exception is for loss-making SMEs that qualify for Enhanced R&D Intensive Support (ERIS).
The Merged Scheme
- Unified Approach:
Brings together the previous SME and RDEC schemes into one streamlined process. - Eligibility:
Applies to all UK companies—large or small—making it easier to navigate and understand.
Designed to standardise benefits while maintaining strong incentives for innovation.
Enhanced R&D Intensive Support (ERIS)
- For Loss-Making SMEs:
If your SME invests significantly in R&D but isn’t yet profitable, you may qualify for enhanced rates. - Specialised Assistance:
This additional support acknowledges the higher risk and financial pressure faced by innovation-led companies.
Why Work With a Specialist?
The updated rules demand precision, strategy, and up-to-date knowledge. Our expert team will:
- Review your projects and assess eligibility
- Identify all qualifying costs under the latest HMRC guidance
- Prepare and submit a compliant, defensible claim
- Maximise your return—whether through a tax reduction or a direct cash credit
Don’t Miss Out on Funding You Deserve
Frequently Asked Questions
What is an R&D Claim?
An R&D Claim is your formal request to HMRC for tax relief or a cash credit based on the money you’ve spent on research and development. It involves gathering proof of your R&D work, like financial records, project reports, and details of staff time dedicated to innovation, to show that your project meets HMRC’s criteria. This claim can help reduce your tax bill or even put cash directly into your business, allowing you to reinvest in future innovation.
Do HMRC check R&D Claims?
Yes, HMRC reviews all R&D Claims to ensure they meet strict guidelines. They check the details and supporting documentation to make sure you only claim eligible costs and that all the information is correct. This careful review process helps maintain fairness and accuracy in the system, but it can also mean additional questions or requests for more details.
What Is the Main Purpose of R&D Tax Relief?
The main goal of research & development tax relief is to support companies that invest in innovation. By reducing your tax bill or providing a cash payment, the scheme helps lower the financial risks of developing new products or processes.
Who Is Eligible for R&D Tax Relief?
UK companies that work on projects involving scientific or technological uncertainties are eligible. Key sectors include manufacturing, information and communication, and professional services. Companies in arts, humanities, or certain service industries like childcare and hospitality are usually not eligible.
What Types of Costs Can I Claim?
Eligible costs include:
- Staff salaries, NIC, and pension contributions
- Subcontractor and freelancer fees
- Materials and consumables (e.g., heat, light, power)
- Software licences, data, and cloud services
- Payments to clinical trial subjects (where applicable)
How Do I Know If my Project Qualifies for R&D Tax Relief?
If your project involves taking risks to overcome technical challenges or scientific uncertainties, it is likely to qualify. Even if the project does not ultimately succeed, the work undertaken may still be eligible.
What Is the Difference Between an SME and a Large Company?
SMEs are defined as companies with fewer than 500 employees and meeting specific turnover or balance sheet criteria. Large companies do not meet these criteria and are subject to different rates and rules under the R&D tax relief scheme.
How Often Do the Rules for R&D Tax Relief Change?
R&D tax relief rules have evolved over time. A new merged scheme is now in place for accounting periods beginning on or after 1 April 2024. Staying informed of the latest changes is crucial, and working with a specialist partner can help ensure your claim remains compliant.
Can I Claim for Projects That Did Not Succeed in R&D Tax Relief?
Yes. The key requirement is that your project meets HMRC’s definition of R&D by addressing scientific or technological uncertainties. Success is not a necessary condition for eligibility.
Why is it important to work with a specialist partner for your R&D claims?
A specialist partner ensures that every aspect of your R&D expenditure is correctly claimed, maximising your benefit from the available tax relief.
Claim Your Free R&D Tax Relief Consultation Today
Unlock more funding that can drive your business’s future innovation? Don’t let valuable money slip away.
Don't Miss Out on Extra Funding!
Our team of experts is ready to help you navigate the complex world of research & development tax relief. We will:
- Review your current projects
- Identify all eligible costs
- Prepare a top research and development claim
- Ensure you receive the maximum benefit from the scheme