R&D Tax Credits Explained For Businesses

Our R&D specialists work with businesses of any size in traditional sectors, including construction, manufacturing, civil engineering, recycling, green tech and waste management – all at no risk to you or your business.

How Does HMRC R&D Tax Credits Work?

There are no upfront costs for our services, and we only collect a reasonable fee when you get the government funds. These funds are made as a cash payment from HMRC or deduction in your company corporation tax bill.

So many business owners do not realise they’re eligible for R&D tax credits because it’s often misunderstood. There are many sectors and businesses which have qualifying R&D expenditure, our expertise is understand your business in the context of these claims.

Below are the details about what is available for businesses like yours with R&D projects, as well as how we can help you secure financial support from the government.

For SMEs with Research and Development (R&D) Spend

The R&D tax relief available to small and medium-sized businesses has improved greatly since it was first introduced two decades ago. The generous enhancement rate allows tax liabilities to be significantly lowered, creating large tax repayments where tax was already paid.

Where a loss is created or has risen, the loss for a specific period can be surrendered in return for a cash payment, even if your business never paid tax to HM Revenue & Customs (HMRC). The scheme is not meant to encourage tax avoidance but instead to boost innovation.


For a large company

The large company regime has also improved over time. HMRC offers the Research and Development Expenditure Credit (RDEC), which big enterprises can claim as a grant against loss rather than within the tax line. Doing so can improve visibility. Furthermore, loss-makers can apply to HMRC for cash payments.

Recent improvements have removed the stipulation that the R&D tax relief only applied if the company was paying corporation tax. However, the Research and Development Expenditure Credit does not have this tax position requirement for cashback.

How to Claim the Tax Incentive

Many UK-based businesses worry that they do not meet the requirements for R&D tax relief or are unclear about how to apply for it. Yet many of these small, medium, and large enterprises qualify and are missing out on the tax break that can make their projects easier and better.

HMRC provides specific criteria as to what qualifies for R&D tax credits. Specifically, it must be an advance in science, and our experts can determine if your project meets the qualifying activity.

Among the misconceptions is that businesses in traditional sectors do not qualify. However, we proudly help those in civil engineering, construction, manufacturing, waste management, and electrical specialties to apply for and receive cash payments from the UK government. We understand that the science and technology sectors are not the only ones with R&D tax costs.

Many companies do not know they are eligible for tax credits and miss out on opportunities and profit. We are here to make sure your business gets the deserved cash payment.

Making the Claim Process Simpler

Veritas Noble has 25 years of practical business experience to bring to the table. Our dedicated experts understand what activities meet an “advance in science” for SMEs, as well as the Research and Development Expenditure Credit for a large company. Submitting financial and technical information is paramount to HMRC is paramount to getting approved. We submit qualifying costs, based on our deep understanding of the requirements, and everything else that is necessary for the application process.

Let us handle the details so that your business can get the cash payment from the UK government that enables your team to develop new products. Working with us is risk-free as we do not collect any money upfront. Only when you receive funds back on qualifying R&D expenditure, do you pay us a pre agreed fee.

Let our R&D specialists submit the application and handle all the steps so that you can focus on your business. Continue to invest in the future with innovative projects. Receive the benefits to which you are entitled. Contact us today to learn more.

Crushing eligibility myths...


No company is too small to get an R&D tax credit. There aren’t any minimum thresholds for making a claim. 


It doesn’t matter whether your R&D spending was successful or not. If you invested in creating a new product that failed when it hit the market, it is irrelevant. From the perspective of HMRC, it makes no difference. As long as the initial expense qualified as research and development under their definitions, you can claw money back. 


Some businesses fall into the trap of believing that it’s too complicated or takes too much time. 

The great news is that with Vertias Noble, it’s easy to find out whether you can get research and development tax credits. We assess your current spending to see whether you can make a claim, and if you do, then we make sure that you get paid the money. We take care of the entire process on your behalf, from the initial assessment of your expense situation to the point when the money is paid into your account.

The Benefits Of Claiming R&D Tax Credits

Claiming R&D tax credits in the UK can provide a significant boost to a business’s financial health, offering substantial benefits that extend beyond the immediate injection of cash. By taking advantage of this valuable government incentive, businesses can enhance their balance sheet, support innovation, and foster growth.

One of the primary advantages of claiming R&D tax relief is the positive impact it can have on a company’s balance sheet. When a business successfully claims R&D tax credits, it can bolster its financial position by reducing its tax liabilities and increasing its overall equity. This enhanced financial standing can make the company more attractive to investors, lenders, and other stakeholders, ultimately contributing to its long-term success.

The process of claiming R&D tax credits involves identifying eligible R&D costs and submitting a claim to HM Revenue and Customs (HMRC) within the stipulated accounting periods. Generally, businesses have two years from the end of the accounting period in which the R&D expenditure was incurred to submit a claim. This process can help businesses ensure that they are maximising their tax benefits and capitalising on their research and development efforts.


Most frequent questions and answers

The R&D tax credit in the UK is a government incentive designed to encourage innovation and investment in research and development. Businesses can claim tax relief on eligible R&D costs, which can either reduce their tax liability or, in some cases, result in a cash payment. There are two main schemes: the Small and Medium-sized Enterprises (SME) scheme and the Research and Development Expenditure Credit (RDEC) scheme for larger companies. The amount of relief available depends on the company size, the scheme, and the qualifying R&D costs incurred.

Eligible R&D costs typically include:

  • Direct staff costs, such as salaries, employer’s National Insurance contributions, and pension contributions for employees directly engaged in R&D activities.
  • Subcontractor costs or externally provided workers involved in R&D activities.
  • Consumable items, like materials, utilities, and software used directly in R&D work.
  • Clinical trial costs for pharmaceutical companies.
  • Prototyping and testing costs.

Companies operating in the UK that are subject to Corporation Tax and engaged in qualifying R&D activities can claim R&D tax credits. This includes businesses of all sizes and across various sectors, as long as the R&D work they undertake seeks to advance science or technology, involves overcoming scientific or technological uncertainties, and is not readily deducible by a competent professional in the field.

Not all activities qualify for R&D tax credits. Some examples of activities that generally do not qualify include:

  • Routine or repetitive work, such as ongoing maintenance or production.
  • The creation of marketing materials, advertisements, or promotional campaigns.
  • Market research, customer surveys, or opinion polls.
  • The purchase or lease of land, buildings, or non-research-related equipment.
  • Business process improvements that do not involve scientific or technological advancements.
  • Staff training and development that is not directly related to R&D activities.

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