R&D tax credits are one of the UK’s most valuable incentives for businesses, but they’re also one of the least understood. Designed to reward companies that invest in innovation, they can reduce your Corporation Tax bill or even provide a cash payment back to your business.
The rules have changed a lot in recent years, which leaves many companies unsure about what qualifies, how the process works, or how much they could actually claim.
This guide breaks it down step by step, from the basics of how R&D tax credits work to practical examples, deadlines, and what HMRC looks for in a claim.
R&D Tax Credits Explained
At their core, R&D tax credits are a way for the government to reward businesses that invest in innovation.
If your company is spending money trying to make a genuine advance in science or technology, the system allows you to reduce your Corporation Tax bill or, in some cases, receive a cash payment back from HMRC.
From April 2024, the system has two main routes:
The merged scheme
This applies to most companies. It works as an “above the line” expenditure credit, meaning the benefit is shown as income in your accounts.
The credit is worth 20% of your qualifying R&D spend, but it’s taxable, so the net benefit is usually around 15% if you pay Corporation Tax at 25%.
Enhanced R&D Intensive Support (ERIS)
This is only for loss-making SMEs that spend at least 30% of their total costs on R&D.
Instead of an expenditure credit, they get an additional tax deduction of 86% on qualifying spend. If that pushes the company into a loss, it can surrender the loss for a payable credit at 14.5%. This makes ERIS particularly valuable for start-ups and scale-ups that aren’t yet profitable.
Why have R&D Rules Changed?
Over the past few years, the rules around claiming have tightened considerably. This is partly to reduce fraud and error, and partly to ensure the relief only goes to projects that really meet HMRC’s definition of R&D. Two big changes are worth noting:
- Additional Information Form (AIF): Every claim now has to be accompanied by a detailed submission to HMRC that explains your projects, the technological uncertainties you tackled, and a breakdown of costs.
- Claim notification: First-time claimants, or those who haven’t claimed in the last three years, must notify HMRC of their intention to claim within six months of the end of the accounting period.
Because of this, HMRC is paying much closer attention to the quality of evidence companies provide.
Strong claims are those backed by contemporaneous project records, involvement of competent professionals, and clear links between the costs and the R&D activity.
Who Can Claim R&D Tax Credits?
Not every business can make an R&D tax credit claim. To qualify, you need to meet a few baseline requirements:
- You must be a UK limited company that pays Corporation Tax. Sole traders and partnerships can’t claim.
- You must be carrying on a trade. The R&D project must be connected to your company’s trade, either an existing one or one you intend to start up as a result of the R&D.
- Your project must meet the definition of R&D set out in the Department for Science, Innovation and Technology (DSIT) Guidelines
Scheme Eligibility
For accounting periods beginning on or after 1 April 2024, most companies fall under the merged scheme, regardless of size.
This means the same expenditure credit system applies whether you’re an SME or a large company.
The only exception is for loss-making SMEs that are “R&D-intensive” (spending at least 30% of total costs on R&D). These can claim under Enhanced R&D Intensive Support (ERIS), which offers a more generous payable credit.
In this context, SME is still defined by the EU thresholds (fewer than 500 staff and turnover under €100m or balance sheet under €86m).
So while the old SME vs large distinction has mostly gone, it still matters when checking if you qualify for ERIS.
What Qualifies for R&D Tax Credits?
To qualify for R&D tax relief, a project has to meet the definition set out in the Department for Science, Innovation and Technology (DSIT) Guidelines.
That means the work must be aimed at achieving an advance in science or technology, not just within your company but in the wider field.
It also needs to involve a genuine scientific or technological uncertainty, something that a competent professional in the field couldn’t easily resolve using existing knowledge.
The work should be led or assessed by people with the right level of expertise, as HMRC places significant weight on evidence from competent professionals when reviewing claims.
The boundaries of what counts are important. Prototyping, trials and experiments that are genuinely about testing whether something will work are usually within scope, but once activity shifts into routine production, cosmetic tweaks, or commercial roll-out, those costs won’t qualify.
Routine tasks such as bug-fixing, adapting existing software for a single customer, or general data entry are also excluded.
Similarly, advances in the arts, humanities or social sciences (including economics) don’t fall under the R&D definition. The regime is focused on science and technology.
The scope of qualifying activity has expanded in recent years. For accounting periods beginning on or after 1 April 2023, companies can also include expenditure on data and cloud computing services where these are directly related to R&D, and projects that rely on pure mathematics can now qualify in their own right.
It’s also worth stressing that R&D isn’t confined to high-tech labs. Successful claims have come from a wide range of sectors. A software company might develop a new algorithm or machine learning technique.
An engineering firm could be working on a component that has to perform in novel conditions. A manufacturer may be experimenting with processes to achieve precision tolerances or reduce waste.
And in the life sciences, clinical trials or the development of new treatments often qualify. The sector itself is less important than whether the work is genuinely trying to solve a scientific or technological problem that others have not yet cracked.
Qualifying Costs: What You Can Claim
When your project meets the R&D definition, the next step is to work out which costs can go into your claim. HMRC sets clear rules, and only expenditure directly linked to qualifying activity can be included.
Staff costs
Salaries, employer’s NIC, pension contributions and some reimbursed expenses can all qualify where employees are directly involved in R&D. Time spent supervising or supporting R&D may also be included, as long as it relates to the project rather than general admin.
Externally Provided Workers and subcontractors
Agency staff supplied to your company (known as EPWs) can be included, along with certain subcontracted R&D costs. The rules here changed under the merged scheme from April 2024, so it’s vital to establish which party has the right to claim.
Consumables and prototypes
Materials, components and a proportion of utilities such as heat, light and power are usually eligible if they are used up during R&D. If you build a prototype that is only used for testing and not sold, the cost of creating it may also qualify.
Software, data and cloud
Software licences, data sets and cloud computing costs are eligible where they are directly used in R&D. Since April 2023, HMRC has confirmed that both data and cloud services can be claimed, recognising their central role in modern R&D projects.
Clinical trials
In life sciences, payments to participants in clinical trials can qualify as R&D costs.
Costs that don’t qualify
General production and distribution, rent, patent and trademark fees, and capital expenditure are excluded. Benefits in kind such as company cars don’t qualify either.
The payment condition
All qualifying costs must actually have been paid within two years of the end of the accounting period to be included in a claim.
How Do R&D Tax Credits Work?
The way R&D relief works depends on the accounting period you’re claiming for and whether you meet the special criteria for the Enhanced R&D Intensive Support (ERIS) scheme. Since April 2024, most companies are in the new merged scheme.
The merged scheme (from 1 April 2024)
Under the merged scheme, your qualifying R&D spend gives rise to a 20% expenditure credit. This shows as income in your accounts and is taxable as trading income.
The net benefit depends on your Corporation Tax rate:
- At the main 25% rate, the effective benefit is usually around 15% of qualifying spend.
- At the small profits rate of 19%, it works out closer to 16.2%.
This credit is subject to a PAYE/NIC cap. The maximum payable element is capped at £20,000 plus three times the total PAYE and NIC liability of staff engaged in R&D.
Enhanced R&D Intensive Support (ERIS)
Loss-making SMEs that spend heavily on R&D may qualify for ERIS. To be eligible, R&D costs must account for at least 30% of total company expenditure, though a one-year “grace period” applies if you drop below this threshold temporarily.
Under ERIS you receive an additional 86% deduction against profits. If that pushes you into a loss, you can surrender the loss for a payable credit worth 14.5%. This makes ERIS especially valuable for early-stage or loss-making companies.
There are also special provisions in Northern Ireland. Certain companies can opt out of the overseas cost restrictions under “NI ERIS”, subject to meeting the conditions set by HMRC.
The R&D tax offset explained
The credit is first set against your Corporation Tax liability. If the credit is larger than your tax bill, some or all of the balance can be paid to you in cash, subject to the PAYE/NIC cap and other ordering rules in HMRC’s seven-step set-off process.
If part of the credit can’t be paid immediately, it may be carried forward or set against other liabilities.
In practice, this means R&D tax credits work either as a tax saving for profitable companies or a cashflow boost for loss-makers.
Contracted-Out R&D and Subcontracting: Who Can Claim?
One of the trickier areas of the rules is working out which company in a supply chain is entitled to claim R&D tax relief. This matters most when projects involve subcontractors or outsourced R&D.
The principle under the merged scheme
For accounting periods starting on or after 1 April 2024, the merged scheme applies a simple guiding principle:
The company that decides to undertake the R&D and bears the financial risk is normally the one that can claim.
This is sometimes called the “intended or contemplated” test. HMRC looks at who initiated the R&D, who stood to benefit from the results, and who would have borne the cost if the project had failed.
Practical examples
Principal company: A manufacturer hires a design firm to create a new production process. The manufacturer decided to pursue the R&D, funds the work, and expects to use the results. Even though the design firm carried out the technical work, the manufacturer is the one entitled to claim.
Contractor company: A specialist software house is paid by a client to deliver a bespoke platform. If the scope of work is tightly defined and the contractor has no freedom to direct the R&D or take on risk, the client is usually the one entitled to claim. However, if the contractor is given broad objectives and must solve the technical uncertainties at its own cost and risk, the contractor may have its own claim.
Why documentation matters
The dividing line can be fine, so HMRC expects companies to back up their position with contracts, project briefs, and contemporaneous records.
Clear wording around ownership of IP, who bears costs of failure, and who directed the R&D can make the difference between a valid claim and one that HMRC rejects.
UK vs Overseas R&D Costs (overseas restrictions)
From accounting periods starting on or after 1 April 2024, the default position is that third-party R&D carried out overseas is not claimable, unless a specific exception applies. The restriction hits two buckets:
- Contracted-out R&D undertaken outside the UK; and
- Externally Provided Workers (EPWs) whose earnings are not within UK PAYE/NIC.
The default rule (what’s blocked)
- Contractor payments only qualify to the extent the R&D activity actually happens in the UK. If a contract mixes UK and overseas activity, companies should apportion on a just-and-reasonable basis.
- EPW costs only pass the gateway where the worker’s earnings are subject (in whole or in part) to UK PAYE and Class 1 NIC. If they aren’t, you need to meet the “necessary overseas” exception (below).
The “necessary overseas” exception (when it can qualify)
Overseas spend on contractors/EPWs can still qualify if the R&D necessarily had to take place abroad because conditions needed for the R&D:
- are not present in the UK,
- are present in the overseas location, and
- would be wholly unreasonable for the company to replicate in the UK.
HMRC gives two non-exhaustive categories of valid conditions:
- Geographical, environmental or social (e.g., access to particular patient populations, climatic/physical conditions, specialised facilities).
- Legal or regulatory requirements (e.g., regulator-mandated testing in a specific jurisdiction).
By contrast, cost, speed, availability of workers, and general convenience do not count as qualifying reasons.
Northern Ireland ERIS carve-out (important exception)
If you are claiming ERIS and have a registered office in Northern Ireland, the overseas restrictions do not apply to your ERIS-qualifying expenditure (unless you opt out). Any RDEC (merged-scheme) amounts outside ERIS remain subject to the restriction.
Evidence HMRC expects
You won’t be asked to file location evidence upfront, but you should retain contracts, statements of work, supplier confirmations, and project records showing where the R&D occurred and why any overseas element met the “necessary” test.
Where activity spans UK and overseas, keep workings that support fair apportionment
Grants, Subsidies & State-Aid Interactions
The new rule from April 2024
For accounting periods beginning on or after 1 April 2024, there is no restriction on claiming R&D relief for subsidised expenditure.
This applies under both the merged scheme and ERIS. The change removes the old SME rule that blocked claims where costs were grant-funded, and it means that projects supported by Innovate UK or other public grants are now treated the same as self-funded projects.
What it means in practice
If your company receives a grant covering R&D staff, subcontractors or consumables, those amounts can still be included in your claim.
The same principle applies where a customer funds part of your work. The funding alone does not exclude the costs.
What matters is who undertook the R&D and who bore the risk, which is determined by the contracted-out R&D rules (see Section 7).
Limits to keep in mind
Not every grant-funded cost is automatically eligible. If the funding relates to capital equipment or general commercial activity, those costs remain outside the scope of R&D relief.
Likewise, where grant-funded R&D is carried out overseas, the normal overseas restrictions apply. In those cases, only work that had to be done abroad for regulatory, environmental or geographical reasons can be claimed.
Transitional position for older claims
For accounting periods beginning before 1 April 2024, the old rules still apply. Under that system, subsidised SME costs were often diverted into the less generous RDEC scheme. If you are preparing claims for earlier periods, you’ll need to apply those rules.
How to claim R&D tax credits (process & paperwork)
1) Check if you must pre-notify HMRC
For accounting periods (APs) beginning on/after 1 April 2023, first-time claimants (or those whose last claim was more than 3 years before the end of the current claim notification period) must submit a simple online claim notification.
Your claim notification period starts on the first day of the period of account and ends 6 months after the period of account ends.
You can satisfy the requirement either by sending the notification or by actually filing the full claim so that HMRC receives it by that same last date. For long periods of account (over 12 months), there’s a single notification window covering all APs within it.
You’ll need the company UTR, the main senior internal R&D contact, and details of all agents involved.
2) Assemble robust technical and cost evidence
Before you file, line up the evidence HMRC expects: what scientific/technological advance you were seeking, the uncertainties faced, and why a competent professional judged that routine knowledge wouldn’t solve them.
Keep proportionate records that show project boundaries, sampling/apportionment logic, and how qualifying costs were derived. HMRC’s GfC3 record-keeping guidance (Part 5) explains what “good” looks like and the types of documents HMRC may ask to see. Read together with DSIT’s definition of R&D.
3) Submit the Additional Information Form (AIF)
The AIF is mandatory and must be submitted before (or on the same day but first) as your CT600. If the CT600 lands before the AIF, HMRC will reject the claim.
The AIF asks for: company identifiers, the senior internal R&D contact, all agents involved, qualifying cost totals (and project-level details in line with the project-selection rules), plus Northern Ireland/ERIS declarations where relevant.
4) File the CT600 (and CT600L where required)
When you’re ready to claim under the merged scheme (APs from 1 April 2024) or ERIS, complete the Company Tax Return and include CT600L. HMRC’s step-by-step page shows exactly how to reflect the expenditure credit (merged scheme/RDEC) and how SME-style ERIS claims interact with CT600L.
Make sure you’ve ticked the boxes confirming claim notification and AIF submission. Note the claim time limits: for a period of account ≤18 months the deadline is 24 months after the end of that period; for >18 months it’s 42 months after the first day of the period.
Using the expenditure credit (merged scheme/RDEC & ERIS): HMRC’s 7-step sequence
HMRC requires a fixed order: first set the credit against current-period CT, then compare to the net amount (after notional tax), apply the PAYE/NIC step (RDEC) or PAYE cap (ERIS), then set off against prior-period CT, group CT, and other HMRC liabilities, with any balance paid subject to the going-concern condition.
PAYE/NIC cap (merged scheme)
If the payable element exceeds the cap (£20,000 + 300% of relevant PAYE/NIC), the excess is carried forward. HMRC’s merged-scheme page confirms how the cap applies and how carry-forwards work.
5) Keep records and be ready to respond
Keep contemporaneous notes from competent professionals, project plans/results, prototypes/tests, timesheets where relevant, invoices, and proof of payments (HMRC expects costs to be actually paid before relief is due).
HMRC’s GfC3 Part 5 sets out practical record-keeping do’s and don’ts and what evidence HMRC may ask for during a compliance check.
Deadlines: How Far Back Can You Claim R&D Tax Credits?
The standard time limit
You make (or amend) an R&D claim by amending your Company Tax Return. For periods of account ending after 31 March 2023, HMRC allows amendments:
- Within 2 years beginning with the last day of a period of account up to 18 months long; or
- Within 42 months beginning with the first day of the period of account if the period of account is over 18 months.
In plain English: for a normal 12-month year, you have two years from the year-end to file or amend an R&D claim. For long periods of account (over 18 months), a 42-month window applies, counted from the first day of that period.
Claim notification can cut you off earlier
For accounting periods beginning on or after 1 April 2023, some companies must pre-notify HMRC that they intend to claim. First-time claimants, and those whose last claim was more than 3 years before the end of the current claim-notification period.
The claim-notification period starts on day 1 of the period of account and ends 6 months after it ends. If notification is required and you miss that window (or don’t file the full claim by that same last date), HMRC says the claim will be invalid.
Worked examples
Example A: standard 12-month year
- Period of account & accounting period: 1 Apr 2024 – 31 Mar 2025.
- Claim deadline (amendment): up to 31 Mar 2027 (two years after period end)
- Notification (if required): claim-notification period ends 30 Sep 2025 (6 months after period end). You must either submit the notification or get your full claim received by HMRC by 30 Sep 2025 to satisfy the notification rule. Missing this (when required) makes any later claim invalid, even if you are still within the two-year amendment window.
Example B: long period of account (>18 months)
- Period of account: 1 Jan 2025 – 30 Sep 2026 (21 months). (There will be two accounting periods within this.)
- Claim deadline (amendment): 42 months from 1 Jan 2025 → by 30 Jun 2028.
- Notification (if required): claim-notification period ends 31 Mar 2027 (6 months after 30 Sep 2026). One notification covers all accounting periods within that long period of account; or you can file the full claim(s) so HMRC receives them by that same date instead. Missing this (when required) invalidates the claim(s).
Don’t forget the AIF timing
Your Additional Information Form (AIF) must be submitted before (or on the same day, but first) as the CT600.
If HMRC receives the CT600 before the AIF, the R&D claim will be removed, and close to the amendment deadline you may have no way to re-make a valid claim.
How Much Is It Worth? (Example Calculations)
1. Merged Scheme – Profit-Making Company
- Scenario: A company spends £100,000 on qualifying R&D. It's profitable, paying the main 25% Corporation Tax rate.
- Calculation:
- Expenditure Credit = 20% × £100,000 = £20,000 (taxable).
- Included in accounts as additional income.
- Tax on that credit at 25% = £5,000.
- Net benefit to the company = £20,000 – £5,000 = £15,000.
- Effective relief rate: 15% of qualifying spend.
If instead the company pays the 19% small profits rate, the taxable credit of £20,000 attracts only £3,800 in tax, giving a net benefit of £16,200, a 16.2% effective relief rate.
2. ERIS – Loss-Making R&D-Intensive SME
- Scenario: A loss-making SME has:
- £100,000 in qualifying R&D spend.
- Overall total expenditure is £300,000, so R&D intensity is 33% (above the 30% threshold).
- Corporation Tax rate is 25%.
- Calculation:
- Enhanced deduction = additional 86% × £100,000 = £86,000.
- This increases the tax-deductible amount, creating or enlarging a loss.
- That additional loss can be surrendered for a payable credit at 14.5% = £86,000 × 14.5% = £12,470.
- Net benefit = £12,470 in cash, plus the value of any existing trading loss relief — significant support for loss-making innovators.
3. R&D Tax Offset Flow (Simplified Overview)
- Calculate your R&D relief — via expenditure credit or ERIS credit.
- Apply it against your CT liability:
- If your CT bill > R&D credit, the credit reduces your liability.
- If R&D credit > CT bill (common under ERIS), you’ll receive cash (subject to PAYE/NIC cap and ordering rules).
- Any excess beyond the cap or set-off may be:
- Carried forward,
- Offset against other liabilities (e.g., PAYE or VAT),
- Or retained for future use, following HMRC's standard sequence.
Summary Table
| Scenario | Qualifying Spend | Scheme | Relief Received | Effective Rate |
| Profit-making (25% CT) | £100,000 | Merged | £15,000 net benefit | 15% |
| Profit-making (19% CT) | £100,000 | Merged | £16,200 net benefit | 16.2% |
| Loss-making, R&D-intensive (ERIS) | £100,000 | ERIS | £12,470 payable | 12.5% (cash) |
These examples clarify how R&D relief works, either as a tax-saving for profitable companies or as a cash injection for those reinvesting in innovation.
Common Pitfalls (and How to Avoid Them)
Even strong R&D projects can run into trouble if the claim isn’t prepared carefully. HMRC’s compliance activity has ramped up in recent years, and enquiries often pick up the same recurring mistakes. Here’s what to watch out for:
Treating routine improvements as R&D
Not every change to a product or process qualifies. Routine bug-fixing, incremental efficiency tweaks, or straightforward customisation for a client rarely meet the DSIT definition of R&D. To qualify, you need to show a genuine scientific or technological advance and uncertainty.
How to avoid it: Tie every project back to the DSIT tests, and make sure your narrative explains what advance was being sought, not just what was delivered.
Product customisation vs innovation
Adapting an existing product to a customer’s specs, without tackling genuine uncertainties, is one of the most common disallowed areas.
How to avoid it: Make clear whether the work involved overcoming technical unknowns or simply configuration. If it’s the latter, leave it out.
Weak technical narrative
Many rejected claims fail because the report doesn’t convincingly describe the scientific or technological uncertainties involved. Saying a project was “innovative” isn’t enough.
How to avoid it: Have your competent professionals draft or review the technical sections, focusing on the problem, the uncertainty, and the attempted solutions.
Costs not properly linked to activities
HMRC expects a clear nexus between qualifying activities and the costs claimed. Generic overhead allocations, or including staff time spent on admin, often get challenged.
How to avoid it: Use timesheets, project logs or justifiable apportionments to show how costs were calculated. Keep this proportional, but evidence-based.
Claiming overseas costs without meeting the “necessary” test
Since 1 April 2024, most overseas subcontractor and EPW costs are blocked unless the work had to take place abroad for geographical, environmental, social, legal or regulatory reasons. Cost, speed, or convenience are not valid reasons.
How to avoid it: Document why the overseas location was essential and keep supporting evidence. If it doesn’t meet the test, leave it out.
Missing pre-notification or AIF
For APs beginning on/after 1 April 2023, first-time claimants (or those with a 3+ year gap) must submit a claim notification within 6 months of period end. From 8 August 2023, all claims must also be supported by an Additional Information Form (AIF), submitted before the CT600. Missing either step makes the claim invalid.
How to avoid it: Diarise the deadlines, file the AIF before the CT600, and make sure the senior officer and agent details are correct.
Exceeding the PAYE/NIC cap
Payable credits are capped at £20,000 plus 300% of the company’s PAYE and NIC for relevant R&D staff. Excess is carried forward, not paid out.
How to avoid it: Model the claim against your PAYE/NIC position before filing so you know if the cap bites.
Misunderstanding who claims in supply chains
Only the company that decides to undertake the R&D and bears the financial risk is entitled to claim. Contractors delivering tightly specified work often cannot claim themselves.
How to avoid it: Check contracts carefully. Document who commissioned the work, who controlled the risks, and where the IP sits.
FAQ's
What’s the merged scheme rate and what’s the “net of CT” benefit?
For accounting periods (APs) starting on/after 1 April 2024, the merged RDEC-style scheme gives a 20% expenditure credit.
That credit is taxable as trading income, so the net benefit is roughly ~15% for companies paying the 25% main CT rate and ~16.2% for companies at the 19% small-profits rate (exact net effect varies if you’re in marginal relief)
Contact UsHow do ERIS and the 30% intensity test (plus grace period) work?
Enhanced R&D Intensive Support (ERIS) is for loss-making, R&D-intensive SMEs.
If your qualifying R&D spend is ≥30% of total relevant costs (with a one-year grace period if you dip below after qualifying), you get an extra 86% deduction and may claim a 14.5% payable credit on surrenderable losses.
ERIS can be chosen instead of the merged scheme for eligible APs starting on/after 1 April 2024.
Contact UsCan I claim overseas R&D?
Overseas spend is restricted from APs starting on/after 1 April 2024. Payments to overseas contractors and overseas EPWs are disallowed unless the R&D must happen abroad for reasons such as geographical, environmental/social, or legal/regulatory conditions that would be wholly unreasonable to replicate in the UK. Cost or convenience alone doesn’t pass the test.
Contact UsI’m in Northern Ireland—do those overseas restrictions still apply?
If you’re registered in Northern Ireland and claiming ERIS, there’s a carve-out so the overseas restrictions do not apply (unless you opt out or you’re claiming under new RDEC). Legislation clarifying this took effect for claims made on/after 30 October 2024.
Contact UsWhat if I receive a grant or customer funding—can I still claim?
Under the merged RDEC-style scheme, there is no bar on “subsidised” expenditure. RDEC historically allows claims where projects have been grant-funded or otherwise subsidised.
For ERIS, HMRC’s manual also confirms no restriction on subsidised expenditure (contrast with the old SME rules that blocked subsidised costs). Always check the specific grant terms (e.g., de minimis for NI ERIS)
Contact UsDo I need Advance Assurance?
No, it’s optional and aimed at SMEs making a first claim (turnover <£2m and <50 employees). HMRC will discuss your R&D and, if satisfied, will accept your first three AP claims provided they match what was agreed.
You still need to follow the standard claim steps (including pre-notification if required and submitting an AIF).
Contact UsHow long do HMRC decisions take and what’s the “compliance climate”?
There’s no guaranteed processing time. Since 2023, HMRC has tightened compliance: AIF is mandatory, pre-notification applies in more cases, and checks are more common, especially where evidence is thin or overseas costs are claimed.
Make sure your submission meets HMRC’s AIF content and project-description standards to avoid delays.
Contact UsWhat does the “R&D tax offset” mean in practice?
Under the merged scheme, the expenditure credit is set against Corporation Tax first (per the statutory seven-step sequence). Any payable element is then subject to restrictions including the PAYE/NIC cap (the higher of £20k or 3× relevant PAYE/NIC).
Contact Us