R&D tax relief: what it is and who it may suit
R&D tax relief rewards UK companies that spend money on research and development. It can reduce a company's Corporation Tax bill, and in some cases provide a payable credit. The work has to meet HMRC's definition of R&D, which is narrower than most people expect.
What counts as R&D?
For tax purposes, R&D means work that seeks to advance knowledge or capability in a field of science or technology by resolving uncertainty that a competent professional could not easily resolve. Routine development or simply making something new to your business may not qualify.
One scheme for most claims
For accounting periods beginning on or after 1 April 2024, most companies claim under a single merged scheme. Rates and rules can change, so check the current GOV.UK guidance before you rely on any figure.
Steps HMRC expects
- Some companies, such as first-time claimants, must send HMRC a claim notification before claiming.
- An additional information form must be submitted before the claim is made on the Company Tax Return.
- Keep clear records that link your costs to the R&D projects.
Getting a specialist involved
A specialist adviser can assess whether your projects qualify and prepare the claim. Ask how they charge before you agree. No one can guarantee that a claim will succeed.
Official guidance is on GOV.UK. This article is general information, not tax advice. Last checked 26 October 2026.