R&D Tax Credit

HMRC defines R&D as work that seeks to achieve an advance in science or technology through the resolution of scientific or technological uncertainty. This can include developing new products, systems, or processes, or improving existing ones.

Any UK limited company that has invested in innovation may be eligible - whether developing new software, improving manufacturing processes, or creating unique solutions.

R&D Tax Credits are claimed through your Corporation Tax Return (CT600). Supporting calculations and a technical report are submitted to HMRC outlining eligible projects and costs.

You can usually claim for qualifying R&D expenditure from the last two completed accounting periods.

Qualifying costs may include staff wages, subcontractor costs, software, consumables, and utilities directly related to R&D activities.

There are two:

• SME Scheme for small and medium-sized companies (less than 500 staff and under €100m turnover).

• RDEC Scheme for larger businesses.

Loss-making companies can often claim a cash repayment, while profit-making companies usually receive a tax deduction to reduce their Corporation Tax bill.

HMRC typically processes R&D claims within 4–8 weeks, although this can vary depending on complexity or current HMRC workload.

If HMRC raises questions, we handle all correspondence, providing detailed justifications and technical evidence to support your claim.

The CT600L is an additional schedule submitted with a company’s Corporation Tax Return (CT600) when claiming Research & Development (R&D) tax credits. It provides HMRC with details of your R&D expenditure and the credit being claimed. From August 2023, HMRC requires all R&D claims to include a completed CT600L form alongside supporting calculations and project summaries.