R&D Tax Credits · SME R&D Relief · RDEC · ACCA Certified

R&D Tax Credits
Claim What Your
Business Is Owed

HMRC's R&D tax credit schemes return up to 18.6p for every pound your company spends on qualifying research and development. Most UK businesses either do not claim at all or claim far less than they are entitled to. Our ACCA-certified team identifies every qualifying cost and prepares robust claims that withstand HMRC scrutiny.

ACCA Certified HMRC Authorised Agent SME & RDEC Specialists AIF Compliant Claims

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Understanding R&D Tax Relief

Two R&D Schemes. Which One Applies to Your Business?

HMRC operates two R&D relief schemes. The scheme that applies to your company depends on your size. From April 2024, most smaller companies use the new merged RDEC-style scheme, with a separate scheme retained for loss-making SMEs.

For most companies from April 2024

Merged R&D Expenditure Credit (RDEC)

20% Above-the-line credit on qualifying R&D expenditure

From April 2024, most companies, including SMEs not eligible for the enhanced SME deduction, use the merged RDEC scheme. The 20% credit is taxable, producing an effective benefit of approximately 15p for every £1 of qualifying spend after corporation tax.

The credit appears above the line in your profit and loss account, improving reported profitability as well as reducing your tax bill.

Loss-making SMEs only from April 2024

Enhanced SME Deduction (R&D Intensive)

27% Enhanced deduction for R&D intensive loss-making SMEs

Loss-making SMEs where R&D expenditure represents at least 30% of total expenditure (R&D intensive) can still access an enhanced relief. The payable credit rate is 14.5% of the enhanced loss, producing a cash payment from HMRC of up to 18.6p per £1 of qualifying spend.

This scheme supports early-stage tech companies and startups that are investing heavily in R&D before becoming profitable. Our startup accounting team assesses R&D intensity as part of every CT600 preparation.

The Additional Information Form, mandatory since August 2023

Since August 2023, all R&D claims must be accompanied by an Additional Information Form (AIF) submitted to HMRC before the CT600. The AIF requires a detailed technical narrative describing the R&D projects, the scientific or technological uncertainty being resolved, and the qualifying costs. Submitting a CT600 without a completed AIF means your R&D claim will be rejected. We prepare and submit the AIF as part of every R&D engagement.

Qualifying Activities & Costs

What Counts as R&D? More Than Most Businesses Think

HMRC's definition of qualifying R&D is broader than most directors realise. The test is whether your project seeks to achieve an advance in science or technology by resolving a scientific or technological uncertainty, not whether you have a dedicated R&D department or laboratory.

Qualifying Activities

  • Software development, building new algorithms, solving novel technical problems, creating APIs that required resolving engineering uncertainty

  • Product development, designing new products where the technical outcome was not certain at the outset, including prototyping and testing phases

  • Process improvement, developing new manufacturing processes, improving existing processes in ways that required technical experimentation

  • Failed projects, R&D that did not achieve its goal still qualifies if the work sought to resolve scientific or technological uncertainty

  • Subcontracted R&D, work subcontracted to third parties may qualify under the new merged scheme rules (with specific conditions)

Qualifying Costs

  • Staff costs, salaries, employer NIC, employer pension contributions for employees directly involved in R&D, including a proportion for those who partly work on R&D

  • Subcontractor costs, payments to third parties for R&D work, subject to the connected/unconnected rules under the merged scheme

  • Software licences, cloud computing costs, software licences, and data costs directly used in the R&D activity

  • Materials, materials and consumables used or transformed in the R&D process, including prototype components

  • Externally provided workers, costs of workers supplied through agencies who work on qualifying R&D activity

Our R&D Service

Everything Included in Our R&D Tax Credit Service

We handle the entire R&D claim process from initial eligibility assessment through to HMRC submission, working alongside your corporation tax return to ensure every claim is maximised, documented, and defensible.

Eligibility Assessment

We review your technical activities against HMRC's qualifying criteria and confirm whether your work constitutes R&D for tax purposes. Many businesses doing qualifying work have never been told they are eligible. We assess at no charge before any engagement begins.

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Technical Narrative Writing

The Additional Information Form requires a detailed technical narrative describing your R&D projects, the uncertainty being resolved, and how the work advances science or technology. We write this narrative in the language HMRC expects, drawing on your technical documentation and interviews with your team.

Enquire About AIF Preparation →

Qualifying Cost Identification

We work through your accounts to identify every qualifying cost: staff salaries apportioned to R&D activity, subcontractor costs, cloud computing and software licences, materials, and externally provided workers. Most businesses we review are missing at least one qualifying cost category.

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CT600 & AIF Submission

We prepare the R&D section of your corporation tax return, submit the Additional Information Form to HMRC before filing, and file the CT600 as your authorised agent. We track the claim through HMRC's processing queue and respond to any queries on your behalf.

View Corporation Tax Service →

HMRC Enquiry Defence

R&D claims are subject to increased HMRC scrutiny since 2023. If HMRC opens an enquiry into your R&D claim, we respond on your behalf, provide the technical and financial documentation required, and defend your position throughout. See our HMRC investigation service for full details.

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Historic Claims, Up to 2 Years Back

HMRC allows R&D claims to be made up to two years after the end of the accounting period. If you have never claimed R&D relief, we can review up to two prior years and file amended returns to recover the credits you were entitled to. This is often the highest-value work we do in a first engagement.

Enquire About Historic Claims →
Why Choose Protax for R&D

R&D Claims That Are Maximised, Documented, and Defensible

The R&D tax credit landscape changed fundamentally in 2023 and 2024. New AIF requirements, the merger of the SME and RDEC schemes, and increased HMRC compliance activity mean that the stakes for a poorly prepared claim are higher than ever. We prepare claims that maximise your entitlement and are built to withstand scrutiny.

  • We Identify Costs Generalist Accountants Miss

    Most businesses that have been claiming R&D relief are under-claiming. Common missed costs include cloud computing expenses, externally provided worker costs, and the correct apportionment of management time spent on R&D supervision. We review every cost category systematically.

  • AIF Technical Narratives Written Correctly

    The Additional Information Form is the most common reason HMRC rejects or enquires into R&D claims since August 2023. We write technical narratives that describe qualifying projects in HMRC's expected format, clear, specific, and supported by the right level of technical detail.

  • Integrated with Your Corporation Tax Return

    R&D claims are filed as part of your CT600. We handle both the corporation tax return and the R&D claim together, ensuring the AIF, the R&D schedule, and the CT600 are consistent and filed in the correct order.

  • Up to Date on the April 2024 Scheme Changes

    The merger of the SME and RDEC schemes from April 2024 changed how most companies calculate their R&D relief. We apply the correct scheme for each client's accounting period and size, including the R&D intensive SME rules for eligible loss-making companies.

  • HMRC Enquiry Track Record

    Increased HMRC compliance activity on R&D claims means enquiries are more common than before. As HMRC-authorised agents, we represent clients throughout any R&D enquiry, providing the technical and financial documentation required and defending every claim we have prepared.

Common Questions

R&D Tax Credits, Frequently Asked Questions

Any UK limited company paying corporation tax that is attempting to resolve scientific or technological uncertainty can qualify. This is far broader than most directors realise. You do not need a dedicated R&D department, a laboratory, or an explicit R&D budget. Software development, new product design, process improvement, and technical problem-solving can all qualify if the outcome was not known or achievable with existing knowledge at the start. We offer a free eligibility assessment to confirm whether your activities qualify before any work begins.
From April 2024, the previous two-scheme system was replaced with a merged RDEC-style scheme for most companies, applying a 20% above-the-line credit. A separate enhanced scheme was retained only for loss-making SMEs where R&D expenditure represents at least 30% of total expenditure. The Additional Information Form has been mandatory since August 2023. The combination of these changes means the way R&D relief is calculated and claimed is materially different from prior years, and claims prepared under old assumptions may be incorrect.
The Additional Information Form (AIF) is a mandatory online submission to HMRC that must be completed before filing your CT600 containing an R&D claim. The AIF requires a detailed description of each R&D project, the scientific or technological uncertainty being addressed, how the work sought to advance science or technology, and a breakdown of qualifying costs by category. If you file a CT600 with an R&D claim without first submitting an AIF, HMRC will reject the claim. We prepare and submit the AIF as a standard part of every R&D engagement.
Yes. HMRC allows R&D claims to be made up to two years after the end of the accounting period. If your company has been doing qualifying R&D work for the past two years and has never claimed, we can review both prior years and file amended CT600 returns to recover the credits you were entitled to. This back-claim work is often the highest-value part of our first engagement with a new client. We carry out the historic review as part of our initial eligibility assessment.
Yes. Loss-making companies that meet the R&D intensive SME criteria (R&D expenditure representing at least 30% of total expenditure) can claim a payable cash credit from HMRC at a rate of 14.5% of the enhanced loss, producing up to 18.6p per £1 of qualifying spend as a cash payment. This is one of the most valuable reliefs available to early-stage tech companies and startups. We assess R&D intensity as a standard part of every startup corporation tax return we prepare.
HMRC has identified significant levels of non-compliance in R&D claims, including both fraudulent claims and genuine errors. From 2023, HMRC significantly increased its compliance resource for R&D. The AIF requirement was introduced specifically to give HMRC more information to assess claims before paying out. HMRC now routinely opens enquiries into claims where the AIF narrative is insufficient, where claimed costs appear disproportionate, or where the activities described do not clearly meet the qualifying criteria. Claims prepared without professional support are at significantly higher risk of enquiry than properly documented claims.
Claim What Your Business Is Owed

Find Out How Much R&D Tax Relief Your Company Is Entitled To

Most UK companies doing qualifying R&D work are either not claiming at all or leaving significant relief on the table. A free eligibility assessment takes one conversation. The back-claim window closes two years after each accounting period ends. Act now to protect your entitlement.

  • Free eligibility assessment, no obligation
  • AIF technical narrative written and submitted
  • All qualifying cost categories reviewed
  • Historic back-claims for up to 2 prior years
  • Integrated with your CT600 corporation tax return
  • HMRC enquiry defence included

Related services: Corporation Tax · Startup Accounting · HMRC Investigation Defence

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