A Quick Guide to R&D Tax Relief for Your Business

Published by Mohsin Khan posted in Research And Development (R&D) on January 7, 2025

Research and Development (R&D) is all about creating something new or improving what we already have. It’s what keeps businesses growing and competitive.

In the UK, the government offers R&D tax credits to support this creativity. But figuring out if you qualify and claiming the relief can feel like a tough nut to crack. 

That’s where we come in!

At Apex Accountants, we make R&D tax credits simple. Our R&D tax advisors work with you.

  • find out if your projects qualify 
  • claim what’s rightfully yours

With us, there is no guesswork, just clear steps to get your tax relief sorted.

This guide will give you the lowdown on R&D tax credits. You’ll learn how they work, who can claim, and which costs qualify. We’ll also break down the different schemes available and the benefits for businesses of all sizes.

Let’s get started!

How Apex Accountants Helps with R&D Tax Claims

Expert Support for HMRC Compliance in R&D Tax credits and Relief

Apex Accountants understands HMRC’s R&D tax credit rules. We keep up with changes like the new rules for R&D-intensive SMEs and the merged scheme for R&D expenditure credits.

We carefully prepare your claims. This includes making sure all documents meet HMRC’s standards. 

We provide: 

  • technical reports
  • financial records, and 
  • supporting evidence

HMRC is checking more claims now. We make sure your claim is correct to reduce the risk of mistakes. If HMRC asks questions, we help you respond quickly.

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How Technology Improves R&D Tax Claims

Automated claim processes for R&D tax credits

Using technology makes R&D tax claims faster and more accurate. Automated tools speed up data collection and report generation. This saves time and reduces mistakes.

Communication between teams gets easier with tech platforms. No more endless back-and-forth. Everyone stays on the same page, speeding up the process.

The software also helps organise documents better. It reduces errors and ensures all required evidence is included.

Technology also helps make sure claims follow HMRC rules. Validation checks catch any mistakes before submission.

A central platform keeps all data in one place. This makes it easy for everyone to access the right information.

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How Apex Accountants Uses Technology for R&D Claims

Simplify R&D Tax Credit Claims with Apex Accountants’ Centralised Platform

Apex Accountants uses a smart platform to make R&D tax claims easier and faster. All your project data is stored in one place, so it’s easy to access. The platform automates most of the paperwork, cutting down on mistakes and making sure everything meets HMRC rules.

You can track your claim in real time, so you know exactly where it stands. This saves time and helps businesses stay focused on what they do best. Our platform works with our expert team to make sure your claim is accurate and processed quickly.

We handle the hard work so you get your tax credits faster and with less stress.

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R&D in Non-Traditional Sectors

Accountant Working on R&D in non-traditional sectors Files

R&D tax relief in the UK isn’t only for traditional sectors like technology and pharmaceuticals. Many other industries also qualify for tax credits. 

Here are some examples:

  • Agriculture: 

Developing new crop types, improving irrigation systems, and using drones for farming.

  • Construction: 

Creating eco-friendly materials, adopting sustainable methods, and designing energy-efficient buildings.

  • Retail: 

Using AI for customer service, improving supply chain technology, and creating eco-friendly packaging.

  • Food & Beverage: 

Innovating new food products, plant-based alternatives, and improving food safety standards.

  • Hospitality: 

Developing new booking systems, enhancing guest experiences with technology, and promoting sustainable travel solutions.

  • Textiles: 

Creating new fabrics, recycling materials, and producing eco-friendly textiles.

At Apex Accountants, we specialise in identifying R&D opportunities in non-traditional sectors. 

We can help you. 

  • uncover eligible activities
  • ensure your claims are accurate, and 
  • provide ongoing support to keep you updated on changes in regulations

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Top Sectors That Claim R&D Tax Relief

A complete guide of R&D tax relief for UK Business

R&D tax relief in the UK is used by many sectors to drive innovation. 

Key sectors include:

  • Manufacturing leads with activities such as creating new production processes, materials, and advanced manufacturing techniques. 
  • The Information and Communication sector claims relief for developing software, improving cybersecurity, and enhancing digital communication technologies.
  • Professional, scientific, and technical activities, including engineering and research, are also key sectors making claims for developing new scientific methods and technical processes. 
  • Wholesale and retail trade businesses often claim R&D relief for improving supply chains, developing new products, and advancing e-commerce technologies. 
  • The financial and insurance sectors benefit from R&D relief for fintech innovations, algorithms, and automation. 
  • Construction companies claim to develop sustainable building methods and new materials. 
  • Healthcare and life sciences firms focus on medical device development and drug research. 
  • Agricultural claims are driven by innovations in farming techniques and agricultural technology.
  • Energy and utilities sectors focus on renewable energy and efficient power generation.

At Apex Accountants, we help businesses from all sectors identify eligible R&D activities and maximise their claims. Our expert team ensures your claims are compliant with HMRC rules, guiding you through every step of the process.

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Key Challenges in the R&D Tax Relief Claim Process

Expert Guidance About R&D claim process for Uk Business

Claiming R&D tax relief in the UK can be difficult. 

It needs: 

  • careful paperwork
  • accurate calculations
  • solid understanding of HMRC rules

The process has become tougher with new rules, including stricter checks and more forms. One big challenge is gathering detailed documentation. This includes technical reports explaining your work and financial records like staff costs and materials used. 

The new form, required from August 2023, asks for even more details. If you don’t follow these rules, your claim could be delayed or rejected. HMRC also monitors claims closely to avoid misuse. 

Apex Accountants helps by preparing your claim, offering expert advice, and ensuring everything is compliant. We manage the process from start to finish.

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Data and Cloud Computing Costs for R&D Tax Relief

Claiming R&D Tax Relief on Data and Cloud Computing Costs

From April 2023, data and cloud computing costs used in R&D activities can be claimed under R&D tax relief in the UK. This includes data licenses for datasets used in research, such as training AI or analysing large data. 

Cloud computing costs, like server time, cloud storage, and computing power for experiments, are also eligible. However, routine data storage and general cloud services not directly used in R&D don’t qualify. 

Apex Accountants can help you identify these eligible costs. We ensure you keep the right records, like invoices and usage logs, to meet HMRC requirements. Our team will manage everything, from assessing your projects to submitting your claim.

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Eligible Staff Costs for R&D Tax Relief

Eligible Staff Costs for R&D Tax Relief: What You Need to Know

R&D tax relief UK lets businesses claim back staff costs linked to qualifying R&D activities. 

Eligible costs include 

  • Salaries
  • wages
  • Class 1 National Insurance Contributions (NICs)
  • pension contributions for employees working directly on R&D projects

Even some indirect staff costs, like 

  • managers or supervisors can be partly eligible

However, routine roles like administration or sales don’t qualify unless they support R&D. To claim, you must keep detailed records, like timesheets and project reports. 

Apex Accountants can help by identifying eligible staff costs, offering documentation support, and handling the full claim process, so you can focus on your innovation.

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Documentation and Procedural Requirements for Claiming R&D Tax Relief

Our Expert Guide About Neccassary Documentation for R&D claim a Client

Claiming R&D tax relief in the UK requires detailed documentation. You need records of R&D projects, including descriptions of challenges, how work was done, and advancements. Financial records must track expenses like payroll, subcontractors, and materials. A technical report must explain the R&D activities and achievements. 

Since August 2023, you must submit an additional information form with details about the costs, advancements, and the relief scheme. Claims must be submitted within two years of the project’s end. 

Apex Accountants can help by reviewing your documents, preparing reports, and submitting forms to ensure everything meets HMRC’s requirements.

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