Research and Development (R&D) tax relief
Information on the different types of relief for companies that work on R&D, how to find out if you can claim and what to do before you make a claim.
Research and Development (R&D) tax reliefs support UK companies working on innovative projects in science and technology.
Before submitting a claim you should consider if your activity will be eligible for R&D tax reliefs.
It is very unlikely you will be eligible if your activity:
- will not be recognised as a scientific or technological innovation
- has already been conducted or is currently being conducted elsewhere
The types of claims which are rarely eligible for R&D tax reliefs include those made by:
- care homes
- childcare providers
- personal trainers
- wholesalers and retailers
- pubs
- restaurants
You cannot claim if the advance is in:
- the arts
- humanities
- social sciences, including economics
You may have to pay a penalty if you make an ineligible claim.
If you’re a member of a recognised tax or accountancy professional body, email HMRC wmbciandrprofessionalbodies@hmrc.gov.uk to report a breach in standards relating to Research and Development only. We will not automatically respond, but we may contact you to ask for further information or clarification if we need to. We will not respond if this email inbox is used for any other purpose.
If you think your company might be eligible for R&D tax relief read the following guidance.
Find out if you can make a claim
Find out if your work qualifies as R&D and the different reliefs your company could claim.
Tell HMRC before you make a claim
For accounting periods beginning on or after 1 April 2023 you may need to tell us if you plan to claim R&D tax relief or expenditure credit.
Submit detailed information before you make a claim
From 8 August 2023 you must complete and submit an additional information form to HMRC to support all your claims for R&D tax relief or expenditure credit.
R&D tax relief for small and medium-sized enterprises (SMEs)
SME R&D tax relief allows companies to deduct an extra 86% of their qualifying costs, in addition to the normal 100% deduction from their yearly profit.
You can also choose to claim a payable credit if your company is making a loss.
If you’ve not claimed tax relief before on R&D projects, you may be able to apply for advance assurance.
R&D expenditure credit (RDEC)
If you’re a large company, you can claim expenditure credit on your qualifying expenditure costs.
You can also claim if you’re a SME and you cannot claim SME R&D tax relief.
Merged scheme R&D expenditure credit (RDEC) and enhanced R&D intensive support (ERIS)
The merged scheme R&D expenditure credit (RDEC) and enhanced R&D intensive support (ERIS) replace the old RDEC and small and medium-sized enterprise (SME) schemes for accounting periods beginning on or after 1 April 2024. The expenditure rules for both are the same, but the calculation is different.
Last updated 1 May 2024 + show all updates
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An email has been added to contact HMRC for members of a tax or accountancy professional body to report a breach in standards relating to R&D.
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New guidance on if your work qualifies as Research and Development for tax purposes, including examples, added to the ‘Find out if you can make a claim’ section.
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The information about when you must submit an additional information form has been updated from 1 August 2023 to 8 August 2023.
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A link to a Welsh version of the page has been added.
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First published.