Here’s Why You Probably Don’t

R&D tax relief is an extremely valuable incentive for innovative businesses, which is precisely why it is so frequently misunderstood and misapplied.

HMRC has significantly increased its level of scrutiny of R&D tax credit claims. What was once a relatively low‑intervention process has evolved into a regime characterised by detailed compliance checks, longer processing times, and more frequent enquiries.

In the Autumn Statement delivered in November 2022, the government announced significant reforms to the UK’s R&D tax relief schemes.

R&D Tax credits can be difficult to understand at the best of times, but add grant funding to the pot, and it can get very confusing and, in many cases, very costly if they are not understood.

The rules regarding R&D tax credit claims for the SME scheme are changing from April 2021, and this could affect the ability of many small businesses to obtain this important tax relief.

An HMRC enquiry can feel daunting — but if your R&D tax relief claim has been prepared correctly, it does not need to be a cause for concern. Understanding why enquiries happen, what HMRC typically focuses on, and how to prepare robust evidence will significantly reduce risk and disruption.

Business owners often tell us they can't claim R&D Tax Credits because they're not paying any tax. Our consultant, John Mapother, explains why this isn't the case.

Claiming R&D Tax Credits for Motorsport teams and suppliers

Research and Development capital Allowances (RDAs) are less well-known than other capital allowances, such as Plant and Machinery Allowances (PMAs) and the Annual Investment Allowance (AIA).