R&D Tax Credits

R&D tax claims let businesses recover costs spent on innovation and research projects.

Who is eligible

Businesses of any size may be eligible for R&D tax claims if they have spent money developing new products, processes, or services — or improving existing ones. If your work involves innovation, problem-solving, or overcoming technical challenges, you could qualify to claim back a portion of those costs through R&D tax relief. 

r and d tax refunds

How does the refund work?

An R&D tax refund works by allowing businesses to claim back a portion of their research and development costs through reduced corporation tax or a cash repayment from HMRC.

tax refund r and d

How long does it take?

The timeframe can vary depending on the complexity of the claim and HMRC’s workload, but most are processed within 4–6 weeks. Simple claims are often paid within a month, while larger or more detailed applications may take slightly longer.

An R&D tax refund is a valuable way to recover costs and reinvest in your business.

refund of r and d

FAQ

R&D (Research & Development) tax credits are a government incentive designed to reward businesses that invest in innovation. They allow companies to claim back a portion of their R&D costs as either a tax reduction or a cash refund from HMRC.

Any UK business in any sector may be eligible, as long as it is working on projects that seek to achieve an advance in science or technology. You don’t need to have a dedicated R&D department – many companies qualify without realising it.

Qualifying activities include developing new products, processes, or services, as well as improving existing ones. Even problem-solving, testing, or overcoming technical uncertainties may count as R&D.

You can typically claim for:

  • Staff wages for employees involved in R&D

  • Subcontractor and freelancer costs

  • Materials and consumables used in R&D

  • Software and IT expenses

  • Utilities like power and water directly used in R&D projects

The benefit depends on your company size and circumstances. SMEs can claim up to 33% of eligible R&D expenditure, while larger companies can claim under the RDEC scheme at a lower rate.

You can usually make a claim for R&D tax credits going back up to two accounting periods (two years).

The rules are complex, and HMRC requires detailed evidence. As specialist tax brokers, we analyse your business activities, prepare robust claims, and maximise your entitlement while ensuring compliance with HMRC guidelines.

See if you qualify for an R&D refund

We’ll review your situation and guide you through the process.

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