Support with Research and Development tax relief claims
Research and Development tax relief is designed to encourage companies to invest in innovation. It can provide valuable tax relief for businesses that are developing new or improved products, processes, systems or services and seeking to overcome scientific or technological uncertainty.
At Carpenter Box, our in-house R&D tax team helps businesses assess whether their work qualifies, identify eligible costs and prepare robust claims in line with HMRC requirements.
We work with companies across a range of sectors, with particular experience supporting manufacturing and engineering businesses where innovation often forms part of day-to-day product development, process improvement and problem solving.
R&D tax relief has become more complex
R&D tax relief can be valuable, but the rules and reporting requirements have become more detailed. Businesses need to be able to show not just that they invested in development work, but that the projects meet the qualifying criteria and are properly supported by technical and financial evidence.
Our role is to help you understand whether your activities qualify, prepare the right information and reduce the risk of errors or HMRC challenge.
We will give you honest advice on whether a claim is likely to be appropriate and help make sure any claim is clear, accurate and well evidenced.
Types of R&D tax relief claims we support
Research and Development (R&D) activity can take place across many sectors, not just in laboratories or technology companies. We help businesses identify qualifying projects where they are seeking to overcome scientific or technological uncertainty and can prepare robust claims supported by technical and financial evidence.
Not every project in these sectors will qualify for R&D tax relief. Eligibility depends on the technical challenges involved, the advance being sought and the work carried out to resolve scientific or technological uncertainty.
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Manufacturing and engineering
We support manufacturing and engineering businesses with R&D claims linked to product development, process improvements, production challenges, materials testing, machinery adaptation and technical problem solving.
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Software and technology
We advise software and technology businesses on R&D claims involving complex development work, systems architecture, platform functionality, automation, data processing and technical uncertainty beyond routine software development.
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Vineyards and agriculture
We support vineyards, growers and agricultural businesses where projects involve technical challenges around cultivation, production methods, environmental conditions, process improvements or product development.
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Food and drink production
We advise food and drink businesses on R&D claims linked to new or improved products, production processes, shelf-life, packaging, quality control and manufacturing efficiencies.
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Construction and property development
We support construction and property businesses where projects involve technical uncertainty around building methods, materials, design, engineering solutions or site-specific challenges.
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Creative, gaming and digital media
We advise creative, gaming and digital media businesses where R&D activity may arise from software development, game mechanics, platform functionality, production technology or new digital processes.
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Healthcare, life sciences and medical technology
We support businesses developing new or improved healthcare products, medical technology, testing methods, devices, processes or systems.
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Energy, sustainability and environmental technology
We advise businesses working on energy efficiency, low-carbon technology, waste reduction, sustainable materials, environmental processes or other technical improvements.
What qualifies as R&D?
For tax purposes, R&D is not limited to laboratories, scientific research or brand-new inventions. It can apply where a company is seeking to achieve an advance in science or technology and is trying to resolve scientific or technological uncertainty.
This could include developing a new product, improving an existing process, creating bespoke software, testing new materials or overcoming technical challenges in manufacturing or engineering.
The key point is that eligibility depends on the nature of the uncertainty and the work carried out to resolve it, not simply the sector, cost or commercial outcome.
Why a robust claim matters
HMRC now expects R&D claims to be well supported, with clear technical explanations and accurate cost information. A claim should explain what advance was sought, what uncertainty existed, what work was carried out and why the solution was not readily available.
Taking advice before submitting a claim can help make sure the position is properly assessed and presented. It can also help reduce the risk of overclaiming, underclaiming or submitting a claim that does not meet HMRC’s requirements.
Meet the R&D Tax team
Frequently asked questions
Research and Development tax relief is a UK Corporation Tax incentive for companies carrying out qualifying innovation in science or technology. It can reduce a company’s tax liability or, in some cases, result in a payable credit.
R&D tax relief is available to UK companies within the charge to Corporation Tax that carry out qualifying R&D activity. The rules differ depending on the accounting period and the type of relief available.
Qualifying work usually involves seeking an advance in science or technology and trying to overcome scientific or technological uncertainty. This can include developing or improving products, processes, systems, software or materials.
No. A project does not have to succeed to qualify. The important point is whether the company attempted to overcome scientific or technological uncertainty through qualifying R&D activity.
A claim is made through the company’s Corporation Tax return. In many cases, an Additional Information Form must be submitted to HMRC before the claim is made, and some companies may also need to notify HMRC of their intention to claim.
The Additional Information Form provides HMRC with details of the R&D projects, qualifying expenditure and adviser information. It must be submitted before the R&D claim is included in the Corporation Tax return.
Yes. For accounting periods beginning on or after 1 April 2024, the old SME and RDEC schemes have been replaced by the merged R&D expenditure credit scheme and Enhanced R&D Intensive Support for qualifying loss-making R&D intensive SMEs.
Qualifying costs can include certain staff costs, software, consumables, materials, subcontractor costs and externally provided workers, depending on the scheme and the nature of the expenditure.
Yes, manufacturing and engineering businesses may qualify where they are developing new or improved products, processes or systems and overcoming technical uncertainty.
You should keep records of project aims, technical challenges, work carried out, staff time, costs and evidence of decision-making. Good records can make it easier to prepare a robust claim and respond to HMRC questions.
