Research and development tax reliefs and credits are a significant benefit for any business, but what exactly are they, how do you qualify, and what do you need to get in place to make a claim?
In simple terms, R&D tax reliefs are a UK government scheme used to incentivise companies to invest in research and other technological innovations by reducing a company's Corporation Tax bill or, in some cases, providing a payable cash credit.
The original idea was to try to stimulate economic growth and make the UK a global leader in scientific and technological innovation. The issue was that this incentive wasn’t always sensibly implemented, leading to some unscrupulous claims.
Today, R&D is increasingly under the spotlight, meaning it’s more important than ever to make sure applications are made correctly and that a rigorous process is followed. Using the services of an expert team, who can advise and implement your R&D claim for you, is the best way to ensure your claim is suitable and goes through the proper process.
Because of the broad nature of these claims and the different types of expertise that are required, using a specialist team is recommended. In particular, a diverse multidisciplinary team with expertise across accountancy, industry, and STEM gives the best opportunity for success.
Who is eligible for R&D?
In the current landscape, it may not seem clear whether your project is eligible to make a claim.
While the standards by which R&D claims are assessed are far more rigorous than when the scheme was first started, there is still a broad range of industries which might be eligible. This scheme isn’t just aimed at labs and white coats. Whether you're working in food tech, fashion, agriculture or the arts, all of these industries may include projects that qualify.
What is key is that the project being worked on aims to resolve a technological uncertainty, or in other words, that the project is developing something new and innovative. Given the wide range of industries and niche projects that can qualify, it’s more important than ever to have a team with a broad specialist skillset that can get to the core of your claim.
Each sector requires different technical knowledge, and so does understanding how to package that into a claim. It’s no good employing a team purely made up of accountants, nor is a team with only STEM specialists enough. Diversity is essential.
If you’re interested to learn more about what qualifies for R&D tax relief and how the process works, we have covered all of this in depth in our insights article on R&D in the spotlight.
What areas of expertise are required for a successful R&D claim?
The most effective teams have skills and experience that fall across four key areas:
- technical/scientific
- industry/business
- accounting/financial
- compliance/policy understanding
Let’s take a closer look at each one.
STEM and scientific expertise
A core pillar of effective R&D claims is the ability to understand and explain the underlying science or technology. Individuals who have worked directly on research or technical projects bring with them a real appreciation of what innovation actually looks like on the ground.
Having experienced the challenges of R&D first-hand, these individuals are well-placed to recognise where genuine advances are being made. They speak the same language as technical staff, quickly grasp the nature of a project, and can draw out the key details.
Crucially, those with a STEM background can present complex technical concepts in a way that’s structured, concise and accessible to HMRC.
This ability to translate real innovation into clear, compliant language is a fundamental part of a successful claim.
Industry and commercial experience
While technical knowledge is essential, it’s just one piece of the puzzle.
A well-rounded R&D team also benefits from members who understand how innovation plays out in real business settings.
Those with industry or commercial experience, whether from working in manufacturing, construction, software, or other sectors, bring an important perspective. They understand the pressures of running a business, managing projects, and delivering practical results.
This insight allows the team to identify where R&D is taking place even when it’s embedded in everyday activity. Industry professionals know how to work effectively with the kinds of documentation and systems businesses use.
People with this experience can also provide context, helping to connect technical progress with broader commercial goals. Together, this makes for a more rounded, realistic and ultimately more persuasive claim.
Accountancy and financial expertise
Understanding the accounting treatment of R&D costs and how to apply the rules accurately is essential.
Experienced financial professionals know how to identify and calculate eligible expenditure, whether that involves staff costs, subcontractors, software licences or consumables. They understand how to apportion costs fairly across qualifying and non-qualifying work, and how to structure claims in line with the specific requirements of the SME and RDEC schemes.
This level of detail is vital. Even a strong technical case can fall short if the financial side isn’t accurate or properly evidenced.
A solid grasp of the numbers also helps avoid common errors, such as missing key cost categories or misinterpreting how funding interacts with eligibility.
Financial expertise ensures that claims are not just technically valid, but also deliver the correct benefit to the business and stand up to HMRC scrutiny.
Compliance and HMRC policy expertise
As R&D tax relief has come under increasing scrutiny in recent years, the importance of compliance expertise has grown.
It’s no longer enough to simply describe the technical work or calculate the costs; claims must also be presented in a way that aligns with HMRC’s interpretation of the rules and the level of detail they now require.
Professionals with compliance and policy knowledge understand how HMRC assess claims, what level of explanation is expected, and how best to structure a submission to avoid unnecessary questions or delays.
This includes keeping up with changing legislation, such as the introduction of pre-notification requirements and the push for more robust narrative justifications. It also involves being able to identify areas of risk, anticipate potential enquiries, and ensure that claims are submitted with the right level of care and consistency.
Good R&D claim specialists are able to actively engage with HMRC at operational and planning levels and have established, effective lines of communication with HMRC.
In short, compliance expertise helps ensure that the claim is not only accurate but that it also meets the expectations of the people reviewing it.
What we offer at UHY Hacker Young
When you work with the team at UHY Hacker Young R&D, you are tapping into a deep well of knowledge and experience.
Our team of professionals have experience across all four essential areas. Our specialist team includes highly qualified chartered accountants, STEM field experts and a team with in-depth knowledge and a close relationship with HMRC, built from over 20 years working in the industry.
All this means that we’re able to give you the best advice and ensure any claim that is submitted has the best opportunity of success while avoiding any unwanted penalties. A strong R&D claim isn’t just about filling out forms; it requires a team effort with a deep understanding of this process.
If you want to find out more about submitting an R&D or creative tax relief claim, please reach out to one of our R&D experts, and we would be happy to discuss how we can help.
