R&D tax credits: could your business qualify?

Research and Development tax relief is one of the most under-claimed reliefs in the UK, partly because businesses assume it only applies to labs and scientists rather than everyday technical problem-solving.

What counts as qualifying R&D

Broadly, work that seeks a technological or scientific advance and involves overcoming genuine technical uncertainty can qualify — this covers a lot of software development, engineering, and product development work that businesses don't think to flag as 'research'.

What costs can be included

Staff costs, subcontractor costs, software, and consumables used directly in the qualifying activity can typically be included in a claim, subject to current scheme rules.

Why businesses miss out

Many businesses either assume they don't qualify because they're not a traditional R&D company, or are put off by the perceived complexity of making a claim.

Our advice

If your business has solved a genuine technical problem in the last two years — even as part of normal product development — it's worth a conversation about whether it qualifies before assuming it doesn't.