R&D Tax Credit Services
Claiming R&D tax credits is a complex and technical process to navigate. Whether claiming for the first time or improving an existing claim, our specialists combine technical and strategic insights to ensure your submission is robust and HMRC compliant.
An introduction to R&D Tax Credits
Whether you’re hearing about R&D tax relief for the first time or exploring your eligibility, it’s important to understand the basics before starting an R&D tax credit claim.
What is an R&D claim?
An R&D Tax claim is a government incentive designed to support companies investing in innovation. Offering tax relief on qualifying research and development expenditure, eligible businesses can either receive a Corporation Tax reduction or a direct cash payment from HMRC.
Who can claim R&D tax relief?
Only UK limited companies, subject to UK corporation tax, can apply for R&D Tax Relief. Each eligible business must also demonstrate:
- • Incurred qualifying R&D expenditure, which could include staff costs, consumables, subcontractor payments, or software expenses.
- • That your company is a going concern at the time of the claim (not in administration or liquidation).
Each R&D project within that business must also fulfil the following HMRC criteria to qualify for R&D Tax credits:
- • Aim to advance knowledge or capability in science or technology by producing physical consequences or increase overall knowledge.
- • Aim to advance and contribute to the overall field, not just your individual business.
- • Aim to resolve scientific or technological uncertainty that could not easily be solved by a competent professional.
- • Detail the work undertaken to resolve or overcome the technical uncertainty.
Claiming R&D Tax Relief
Think your company is eligible for R&D Tax relief? Our R&D specialists will guide you through the application process and help you secure R&D tax relief for your innovation business.
1. Discovery call
During your free consultation, one of our R&D tax specialists will work with you to understand your R&D activities, assess your eligibility, and identify all qualifying projects and expenditures to ensure we can develop a robust strategy for your claim.
2. R&D scheme selection
As of April 2024, there are two main routes for claiming R&D relief:
- • Merged RDEC Scheme: Offering 20% above-the-line taxable credit on qualifying R&D expenditure.
- • Enhanced R&D Intensive Support (ERIS): Offering a 186% deduction of qualifying expenditure and a 14.5% repayable credit on surrenderable losses for loss-making SMEs.
We will help you understand the eligibility criteria for the UK’s Research and Development tax credit schemes and find the right pathway for you.
3. Claim notification
At this stage, first-time claimants or companies who haven’t submitted an R&D claim within the past three accounting periods will need to submit to a claim notification to HMRC. Detailing your company information, R&D lead contact details, and a brief project summary, we can support you through this first submission.
4. Claim preparation
Next, we’ll compile your claim, gathering all the necessary financial information and documentation to create a detailed technical report for HMRC.
5. Additional Information Form
Next, we will guide you through an Additional Information Form. The form will need to be completed and submitted to HMRC before submitting your R&D claim. The AIF will include:
- • A detailed breakdown of qualifying R&D costs by category
- • Names of the competent professionals responsible for the work
- • Descriptions of your R&D projects.
- • A signed declaration confirming the accuracy of the information.
6. Claim submission
Following the submission of your AIF, we will finalise and submit your R&D claim via your Corporation Tax return (CT600). Each submission will undergo thorough compliance checks to ensure your claim adheres to the latest legislation.
7. On-going support
We continue to support you after your claim submission, with chartered tax advisors to assist with any HMRC questions or feedback.
R&D Support for Existing Claimants
If you’ve claimed for R&D credits before, but want an expert to review your submission, we offer second opinions and review services for existing claimants.
Risk Reviews
A thorough assessment of your existing or past claims to reduce the risk of HMRC enquiries.
Compliance Checks
Compliance checks to ensure that your claims meet updated legislation and documentation standards.
Claim Advice
Offering strategic and technical insight to identify any areas of your application that may have been overlooked or could be improved.
Why Choose Streets Innovation?
When securing R&D Tax Relief, attention to detail is essential. That’s why our team of R&D consultants aren’t just financial experts; they are technical specialists with a wealth of experience securing tax relief for innovation businesses across the UK.
Claim your R&D Tax Relief
Ready to unlock the full value of your R&D? Book a free consultation with one of our experts.
R&D Tax Credit FAQs
What industries can apply for R&D credits?
Most industries can apply for R&D credits, as your eligibility is not determined by your industry, but whether your company is genuinely seeking to make advances in science or technology through structured R&D activity. Industries that often apply for R&D credits include:
- Agriculture
- Biotech
- Biomed
- Construction
- Defence
- Engineering
Does your business need to be profitable to claim R&D?
It’s also worth noting that profitability is not a requirement. Both profit-making and loss-making businesses can claim, although the form of relief differs. For loss-making SMEs that qualify as R&D-intensive, there’s a separate support stream that could provide valuable cash support.
Does your project have to be successful to be eligible for R&D tax credits?
No, your project doesn’t have to be successful for you to be eligible to claim R&D tax credits. As long as your project aims to advance knowledge or capability by resolving a scientific or technological uncertainty, it will meet the DSIT guidelines.
When do you need to submit a claim notification?
The deadline to submit your claim notification is six months after the end of your company’s accounting period. If you miss this deadline, your claim will be invalid, regardless of whether your project qualifies, and you will not receive R&D tax relief.
Are AIFs mandatory for R&D claims?
Yes, since August 2023, all R&D claims must include an Additional Information Form submitted before the Corporation Tax return. Claims submitted without a completed AIF will be automatically rejected.
