R&D Tax Credits: Maximizing Relief for UK Innovators
Research and Development (R&D) tax credits provide substantial financial relief for UK companies investing in innovation. Since April 2024, the merged R&D scheme offers 20% standard relief or up to 27% for R&D intensive companies. These credits can dramatically reduce your corporation tax bill or provide valuable cash payments for loss-making companies.
At SCG Tax Limited, we specialize in identifying qualifying R&D activities and preparing robust claims that maximize your tax relief while ensuring full compliance with HMRC requirements. Our Chartered Tax Advisors possess deep technical knowledge of R&D tax legislation combined with practical understanding of innovation across diverse industries.
Many UK businesses undertake qualifying R&D activities without realizing it. We serve companies across all of London and every region in the UK, helping businesses in technology, manufacturing, food and beverage, construction, engineering, and numerous other sectors claim the R&D relief they deserve.
R&D Tax Credit Benefits
Up to 27%
Tax relief on qualifying R&D expenditure for R&D intensive companies
Cash Credits
Loss-making companies can receive cash payments from HMRC
Wide Scope
Relief available across numerous industries and innovation types
What Qualifies for R&D Tax Credits?
Qualifying R&D Activities
R&D for tax purposes involves projects seeking an advance in science or technology through resolving scientific or technological uncertainties. This includes:
- Developing new products, processes, or services
- Making appreciable improvements to existing products or processes
- Using science or technology to duplicate existing products where methodology is uncertain
- Overcoming technical challenges not readily deducible by competent professionals
Qualifying Expenditure
You can claim R&D tax relief on the following costs directly attributable to qualifying R&D:
Industries We Serve for R&D Claims
Software and Technology
Developing new algorithms, overcoming technical limitations, creating innovative features
Manufacturing and Engineering
Process improvements, product development, materials innovation
Food and Beverage
Recipe development, shelf-life extension, production process innovation
Construction
New building methods, materials testing, structural problem-solving
Life Sciences and Biotech
Medical device development, pharmaceutical research, diagnostic tools
Creative Industries
Visual effects, gaming engines, animation technology
Our R&D Tax Credit Claim Process
Initial Assessment
We conduct a thorough review of your business activities to identify qualifying R&D projects. This involves discussions with your technical team to understand the challenges overcome and innovations developed.
Technical Report Preparation
We prepare a comprehensive technical narrative explaining your R&D activities, the scientific or technological uncertainties faced, and how your projects sought advances in your field. This report is crucial for HMRC compliance.
Cost Analysis and Calculation
We identify and quantify all qualifying expenditure including staff costs, subcontractor fees, consumables, and software. Our detailed calculations ensure you claim the maximum relief available while meeting HMRC requirements.
Claim Submission and Follow-up
We submit your R&D claim via your corporation tax return with full supporting documentation. If HMRC raises any queries, we handle all correspondence and provide additional information to support your claim.
2025 R&D Tax Credit Updates
Merged R&D Scheme
Since April 2024, the SME and RDEC schemes have merged into a single R&D relief scheme offering 20% standard relief or up to 27% for R&D intensive companies (those spending 30% or more of total expenditure on R&D).
Grant Funding Compatibility
Major change from April 2024 allows companies receiving grant funding to claim R&D tax credits on the same expenditure, provided the grant itself is not for the same costs.
Enhanced Compliance Requirements
HMRC has strengthened compliance measures requiring detailed technical narratives, contemporaneous documentation, and advance notification for first-time claimants. Our expertise ensures your claim meets these requirements.