R&D Tax Credits
R&D Tax Credits UK - Specialist Support for Claims, Compliance and Maximising Value
Are you investing time and money into innovation but unsure whether you qualify for Research & Development tax credits?
R&D tax relief works by allowing businesses to claim back a proportion of qualifying development costs, either as a reduction in Corporation Tax or as a payable cash credit.
At Charlton Baker, we support ambitious, forward‑thinking businesses to identify, prepare and submit robust R&D tax credit claims, unlocking valuable corporation tax relief or cash repayments - while remaining fully compliant with HMRC’s increasingly complex rules.
What Are R&D Tax Credits?
R&D tax credits are a UK Government incentive designed to reward companies that invest in developing or improving products, processes, software or services where there is technical or scientific uncertainty.
Crucially, R&D is not limited to laboratories or ‘blue‑sky’ research. Many businesses qualify through day‑to‑day problem solving, development work and innovation within their sector.
You may be eligible if your business:
- Develops or improves products, systems or processes
- Solves technical challenges without an obvious solution
- Experiments, prototypes or tests new approaches
- Uses specialist technical, engineering, software or scientific knowledge
Claims are available to both profit‑making and loss‑making companies.
What costs qualify for R&D tax credits?
One of the most common questions we’re asked is what you can actually include in an R&D claim. While every claim is different, HMRC allows a range of costs directly linked to your development work.
These typically include:
Staff costs
Salaries, wages, bonuses, employer/director pensions and employer NICs for employees involved in R&D activities. This often forms the largest part of a claim, particularly for businesses with in-house development or technical teams.
Software costs
Software used directly in your R&D projects, such as development platform tools, hosting costs, testing environments or specialist platforms required to carry out technical work.
Subcontractor costs
Payments to third-party specialists, contractors or agencies who contribute to your R&D work. Please note that they need to be based in the UK. The rules here can be complex, particularly under newer regimes, so it’s important to review these carefully.
Materials and consumables
Costs of items used up or transformed during the R&D process - for example, components used in prototyping, testing/trial production as well as wastage (especially with a failed/ongoing project).
Depending on your business, other costs may also qualify. The key is whether the expenditure is directly linked to resolving technical or scientific uncertainty within your projects.
How Much Could an R&D Claim Be Worth?
The value of an R&D tax credit claim depends on:
- Your qualifying R&D expenditure: typically around 16% of these costs back in credits
- Whether you qualify as an R&D intensive company.
For many businesses, claims result in:
- Corporation tax reductions, or
- Payable tax credits (cash back from HMRC)
In some cases, claims can be worth tens or hundreds of thousands of pounds and may be repeatable annually, provided innovation continues.
How we work
Our process is designed to make claiming R&D tax credits straightforward, while ensuring every submission is robust and fully compliant.
We typically support clients through:
Initial eligibility assessment
We start with a practical conversation to understand your business and identify whether your activities are likely to qualify - giving you clarity from the outset.
Identification of qualifying projects
We work closely with you to pinpoint the areas of your business where genuine R&D activity has taken place, often uncovering opportunities that aren’t immediately obvious.
Preparation of technical narrative
We translate your work into a clear, structured explanation that meets HMRC’s requirements - demonstrating the technical challenges faced and how they were addressed.
Calculation of qualifying costs
We analyse your financial data to ensure all eligible expenditure is captured accurately, maximising the value of your claim while remaining compliant.
Submission to HMRC
We prepare and submit your claim as part of your Corporation Tax return, ensuring everything is complete, consistent and aligned with current legislation.
Support in the event of enquiry
Should HMRC have any questions, we’re on hand to manage the process and provide the necessary support - giving you confidence that your claim is properly backed up.
We offer a free, no obligation R&D appraisal to help you understand eligibility and likely value before you proceed.
Do You Qualify for R&D Tax Relief?
You may qualify if you answer “yes” to any of the following:
- Have you developed or improved products, software or internal systems?
- Have you overcome technical challenges or uncertainty?
- Have projects required experimentation, testing or iteration?
- Have some initiatives failed for technical reasons?
- Do clients rely on your specialist expertise or technical capability?
Innovation often isn’t obvious internally - which is why so many eligible businesses never claim.
If you've answered 'yes' to any of the questions above, give us a call on 01380 723692 or email us here.
“A business partner had recommended R&D credits to us a while ago but we felt it was going to be a lot of paperwork for something that would probably not be approved. However, the whole process only took a few hours of our time and a couple of months later, we received the credit from the HMRC. Would highly recommend”
Adrian, Founder, Parisa Technologies Limited
Industries We Commonly Support
Charlton Baker supports R&D claims across a wide range of sectors, including:
- Manufacturing & Engineering
- Software & Technology
- Food & Drink
- Agriculture & Agri‑tech
- Architecture & Design
- Electronics & Product Development
- Science, Pharma & Life Sciences
If innovation is part of how your business operates, R&D tax relief may apply.
Why Claim R&D Tax Credits with Charlton Baker?
R&D tax credits are an area of increased HMRC scrutiny, and poorly prepared claims carry real financial risk.
Our approach is:
- Specialist‑led and evidence‑based
- Fully aligned with current HMRC legislation and guidance
- Designed to minimise disruption to your team
With increased HMRC scrutiny of R&D claims, it’s more important than ever that submissions are robust and clearly evidenced.
Our specialist team combines technical, financial and tax expertise, ensuring claims are both maximised and robust in the event of an HMRC enquiry. We focus on robust, defensible claims rather than inflated or high‑risk submissions.
Speak to a Charlton Baker R&D Tax specialist now.
Frequently asked questions about R&D tax credits
We’re often asked a number of common questions by businesses exploring whether they can make an R&D claim. Below are some of the key areas to consider:
What qualifies as R&D?
R&D for tax purposes involves developing or improving products, processes, software or services where there is technical or scientific uncertainty. In many cases, this includes day-to-day innovation and problem solving within your business - not just formal research projects.
How much can I claim?
The value of a claim depends on your qualifying expenditure and whether you are profit‑making or loss‑making. Claims can lead to a reduction in Corporation Tax or, in some cases, a cash repayment from HMRC.
Can I claim for failed projects?
Yes. Unsuccessful projects can still qualify, provided they involved genuine attempts to overcome technical uncertainty. In fact, failed initiatives are often a strong indicator that qualifying R&D has taken place.
How far back can I claim?
In most cases, you can make a claim for up to two completed accounting periods. This means there may be an opportunity to revisit recent activities and recover value that has not yet been claimed.
Is HMRC reviewing claims more closely?
Yes. HMRC scrutiny of R&D claims has increased in recent years, making it more important than ever that claims are accurate, well-supported and fully compliant with current guidance.
“Charlton Baker made what we thought would be a complicated and time consuming process very easy. We took it step by step, were asked all the right questions in a way we could understand and they did all the hard work meaning we didn’t have to invest any significant time on this. 28 days later we got presented with a rather large cheque back from HMRC! What’s not to love! Wonderful people and company to work with, would highly recommend them to anyone who asks”
Siobhan Freegard OBE, Founder, ChannelMum
No Upfront Cost - fees contingent on success of claim
No upfront fees. No charge if no claim is identified. Fees only payable once HMRC pays the credit or relief.
This ensures our incentives are fully aligned with yours.
If you’d like to explore whether your business qualifies for R&D tax credits - and how much you could claim - we offer a free, confidential consultation with no obligation.
We are always here to talk
