Frequently Asked R&D TAX Questions

HMRC has a very specific definition of R&D and you can read about it here (opens in new tab). This is not the same as what many business owners think of as "R&D".

R&D for tax purposes takes place when a project seeks to achieve an advance in science or technology through the resolution of scientific or technological uncertainty.

You can read HMRC’s full guidance on how to see if your work qualifies as Research and Development for tax purposes here (opens in new tab).

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.

Not necessarily. In fact, in the majority of cases, the answer is no. Just because something uses technology, it does not make it R&D for tax purposes. HMRC has a specific definition that focuses on projects aiming to achieve an advance in science or technology by resolving scientific or technological uncertainty.

For a project to qualify, it must involve challenges that a specialist in this field couldn’t solve using existing knowledge or techniques. It’s not enough for work to be complex or unique. The key is whether it pushes the boundaries of current science or technology.

Simply using advanced technology or creating something bespoke doesn’t meet HMRC’s criteria if it doesn’t involve overcoming genuine scientific or technological uncertainties.

You can read HMRC’s full guidance on how to see if your work qualifies as Research and Development for tax purposes here (opens in new tab).

Yes, we can. We can help you assess whether your project meets HMRC’s definition of R&D and guide you through the process of claiming R&D tax relief.

Contact us at team@rdreliance.com to arrange a discussion and find out if your work could qualify.

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.

It’s important to understand that not all work qualifies for R&D tax reliefs. You might have achieved an advance without overcoming technological uncertainty or resolved a technological uncertainty without achieving an advance. You’ll need both aspects to qualify.

At RD Reliance, we’ll leverage our deep understanding of HMRC’s criteria and expectations, gained through extensive experience, including our founder’s former career as a Senior HMRC Tax Inspector. This enables us to assess your activities thoroughly, ensuring they meet the R&D tax scheme’s strict requirements. If your business doesn’t qualify, we’ll tell you upfront, saving you time and effort.

If your work qualifies, we’ll ensure your claim is maximised in line with the rules, remaining fully compliant while ensuring you claim every pound you’re entitled to. Our expertise ensures that every claim we prepare is robust, accurate and defensible, giving you the confidence and peace of mind you need.

RD Reliance has extensive expertise in the R&D tax scheme, built on our founder’s background as a Senior Tax Inspector working alongside the R&D tax scheme since its introduction in 2000. This provides us with a deep understanding of HMRC’s processes and expectations.

Every R&D tax claim we prepare is reviewed and quality-assured by qualified tax professionals, with qualifications ranging from AAT and ATT to an MSc in Taxation. This ensures that all R&D tax claims we prepare are robust, accurate, compliant, fully maximised and defensible.

As certified members of the R&D Community, our high level of knowledge and expertise in the R&D tax scheme has been independently tested and assessed through the community's certification process. We are proud to be one of the highest-ranked advisors for R&D training completion in the official R&D Community Membership Directory (opens in new tab), demonstrating our commitment to continuous learning and excellence. This reflects our dedication to maintaining the highest standards of professionalism, up-to-date knowledge and integrity in everything we do.

Choosing RD Reliance means working with an ATT member firm and a trusted R&D tax specialist who prioritises compliance, accuracy and quality over volume. Led by an ex-HMRC Senior Tax Inspector with extensive experience in R&D tax relief and enquiry support, we understand HMRC’s expectations and how to prepare robust, defensible claims.

In an era of increased HMRC compliance activity, we provide peace of mind by ensuring your claim is thoroughly reviewed and aligned with their guidelines.

As certified members of the R&D Community, we adhere to the highest standards of integrity and professionalism. If your business doesn’t qualify, we’ll tell you upfront, saving you time and effort. Our honest, expert approach ensures you can trust us to handle your claim with care and precision.

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.

In theory, businesses in any sector can claim R&D tax reliefs if they have a qualifying project. At RD Reliance, we work with innovative companies across a range of industries but our primary focus is on healthcare, biotech and pharmaceuticals, agri-tech, energy and renewables, fintech, software and IT, mathematics, engineering, manufacturing, automotive and aerospace.

We are particularly interested in collaborating with innovative Welsh companies and fostering connections within the Wales Tech community.

While R&D tax reliefs are available broadly, HMRC has noted that certain sectors (opens in new tab), such as care homes, childcare providers, personal trainers, wholesalers, retailers, pubs and restaurants, are unlikely to meet the necessary qualifying criteria.