R&D tax claims built to withstand HMRC scrutiny.

Some businesses overlook R&D tax reliefs because they assume their work doesn’t align with the traditional image of “research and development” involving laboratories or scientists. In reality, the scheme isn’t limited to specific sectors or types of work and it can apply more broadly than many expect. While it’s not the case that most businesses will qualify, if you are seeking to address genuine scientific or technological uncertainties, it’s possible that your work could qualify for relief.

The tax legislation defines R&D as involving a project that seeks to achieve an advance in science or technology by resolving scientific or technological uncertainty. This means that it’s not about routine improvements or guesswork. It’s about genuine problem-solving where the outcome wasn’t obvious from the start, and situations where it’s uncertain whether a viable solution exists or how to achieve the desired outcome. It’s about pushing beyond standard practices when even the experts involved don’t know how to solve the challenges faced, when they begin.

Examples of things that might qualify:

• You aimed to develop or improve a product, process or system by resolving specific scientific or technological uncertainties, rather than just delivering a new aesthetic feature.
• The project involved overcoming scientific or technological uncertainties that couldn’t be solved using existing knowledge or readily available solutions.
• Your experts had to experiment, prototype or test different approaches to find a viable solution, where the outcome was uncertain, and no standard method was available to achieve the result.
• Tackling environmental challenges with new technological solutions in ways that resolved existing scientific or technological uncertainties.
• Developing new medical devices, drug formulations or diagnostic tools where success wasn’t guaranteed.
• Innovating in energy production or storage or improving efficiency in renewable energy systems, where existing methods were insufficient, and technological uncertainties had to be addressed.
• You developed new manufacturing processes aimed at improving efficiency, but where the technical feasibility or implementation method was initially uncertain, and the improvements sought were not trivial.

Examples of things that won’t qualify:

• Innovation with no attempt to resolve scientific or technological uncertainty.
• Simple tweaks with no technical challenge.
• Cosmetic changes or aesthetic improvements.
• Using existing tools, technologies or methods without modification or advancement.
• Work where the solution was relatively straightforward or widely available, even if the development was time-consuming.

Remember that failed attempts to make an advance might still qualify. Even if the project didn’t succeed, the attempt to solve scientific or technological uncertainties may still be eligible. Speak to us at RD Reliance to find out more.

Comprehensive expert enquiry support is included as standard with every R&D tax claim we prepare. This means that if HMRC selects your claim for review, you can rest assured that we'll be there to manage all correspondence with HMRC, helping to minimise your stress from any HMRC enquiry, save you time and provide expert guidance to help defend your claim.

It’s important to realise that any claim can potentially be subject to an enquiry. HMRC is required to conduct a number of enquiries each year, some of which are selected completely at random, regardless of the strength of any R&D claim submitted.

At RD Reliance, we are committed to only submitting claims that are fully compliant with HMRC’s rules. If an enquiry is launched, we will be by your side every step of the way, helping you navigate the process and defend your claim with confidence.

Yes, we handle the entire process, from eligibility assessment to submission and monitoring with HMRC. We also manage any follow-up queries to ensure a smooth and efficient experience for you.