What are R&D Tax Credits?
R&D tax Credits are a government incentive designed to stimulate growth and reward innovation to companies in the UK. The scheme has been running for over a decade and due to its success, has now been guaranteed until 2032. In a nutshell, if a business is spending money developing new products and trying out new things, then they’re entitled to money back from HMRC whether this be in the form of a cash payment or money off existing and future corporation tax.
How do they work?
Put simply, companies who spend time and money developing new products, processes, or services; or bettering/simplifying existing ones are entitled to a percentage of this spend back from HMRC. Depending on a company’s Tax position they can claim back anywhere between 19% and 33% of eligible spend back as either a cash injection or money off their corporation tax bill. This is an invaluable scheme that allows companies to reinvest in their business and continue their growth.
Who Qualifies for R&D Tax Credits?
Contrary to popular belief, the scheme is not solely targeted at people wearing white lab coats fiddling with test tubes; it’s much broader than that. As long as you are a limited company spending money on innovative projects and solving industry problems then there’s potential for you to make a claim. Essentially, anything that helps a business gain a competitive advantage in a new and innovative way could be eligible for tax relief. It’s always worth exploring the potential as the average claim value nationwide is around £25,000.
- Construction
- Manufacturing
- Software
- Renewable Energy
- And many more

Who Qualifies for R&D Tax Credits?
Contrary to popular belief, the scheme is not solely targeted at people wearing white lab coats fiddling with test tubes; it’s much broader than that. As long as you are a limited company spending money on innovative projects and solving industry problems then there’s potential for you to make a claim. Essentially, anything that helps a business gain a competitive advantage in a new and innovative way could be eligible for tax relief. It’s always worth exploring the potential as the average claim value nationwide is around £25,000.
- Construction
- Manufacturing
- Software
- Renewable Energy
- Food & Drink
