How do you claim R&D tax credits for the first time?

Submitting a client’s first R&D tax relief claim often comes with a few extra considerations.

The work itself may qualify quite clearly, but first-time claims tend to attract closer scrutiny from HMRC, particularly where the company has not claimed before or the technical narrative lacks detail.

Since the introduction of the Additional Information Form (AIF), the process has, fortunately, become more structured and transparent, creating a clearer framework for preparing claims for the first time.

What needs to be submitted?

For most companies, the process for submitting an R&D tax relief now includes:

• Preparing and submitting the AIF
• Including the claim within the Company Tax Return (CT600)
• Providing a technical narrative and cost breakdown
• Identifying the correct individuals within the claim, including the competent professional and the staff working on the project

The AIF must be submitted before the Corporation Tax Return is filed, because HMRC will not process the claim without it.

The form requires details on qualifying projects, which scheme you are claiming under, company details, expenditure categories and relevant contact details.

Does the client need to submit a claim notification form?

Some claimants will also need to submit an Advance Notification Form (ANF).

This usually applies where the company is making its first claim or has not claimed within the previous three accounting periods.

The notification must normally be submitted within six months of the end of the accounting period the claim relates to.

For example, a company with a 31 May 2026 year-end would need to submit the notification by 30 November 2026.

Missing this deadline can prevent the client from making a valid claim altogether, which is why it is important to establish eligibility early in the process.

There are exceptions, particularly where the company has recently claimed under connected entities or previous structures, though these should be reviewed carefully.

An ANF is still required if the previous R&D claims were submitted through an amended Corporation Tax return, as the three‑year exemption applies only to claims included in the original return.

If you are not sure if your client is required to submit an ANF, contact our team for guidance.

What should the technical narrative cover?

For first-time claims, HMRC wants to understand:

• What scientific or technological advance was being sought during the project
• What uncertainties existed
• Why the solution was not readily deducible by a competent professional
• What work was carried out to resolve those uncertainties
• What challenges were faced during the project and how they were overcome
• Whether or not the project was successful (though this will not impact the success of the claim)

Strong technical narratives stay focused on the R&D itself rather than the commercial goals of the project.

Software claims, in particular, often fall into the trap of describing functionality rather than the underlying technological challenges.

What costs can be included in R&D tax claims?

Qualifying expenditure will usually include a combination of:

• Staff costs
• Externally provided workers
• Subcontractor costs
• Consumables
• Software directly related to the R&D

Care is needed when staff split their time between qualifying and non-qualifying activities, as only time spent directly on the R&D project is eligible.

Apportionments should be reasonable, consistent and supported where possible.

Why does preparation matter more for first-time claims?

A first claim often sets the tone for future submissions.

Poorly prepared claims can lead to lengthy HMRC enquiries or create issues for later accounting periods where the same projects continue.

A negative experience with R&D tax claims can also put some companies off applying for the relief in the future, even if they are doing work that deserves the relief.

We are strong advocates for enhanced record-keeping practices in R&D work.

When the competent professional documents their reasoning and trial‑and‑error throughout the work, the narrative can more accurately reflect the challenges involved.

Good time‑tracking also leads to more accurate cost figures by clearly separating qualifying R&D time from routine activity.

For first‑time claimants, the process often takes longer because they’re unfamiliar with the evidence HMRC expects and the level of detail required, which creates extra hurdles to work through.

It’s best practice to start preparing the claim well ahead of the deadline, giving yourself and your client enough time to gather the right documentation and resolve any issues before submission.

For accountants, this is often where working alongside an R&D specialist becomes useful.

The accountant maintains oversight of the client relationship and Corporation Tax position, while the specialist focuses on identifying qualifying activity, preparing the technical narrative and supporting the claim through HMRC review where required.

For expert support for first-time R&D claimants, get in touch with our team today.

Adam Bointon

Adam Bointon is a Technical Director specialising in R&D Tax Credits for SMEs in manufacturing and software sectors. With over 15 years’ experience, he works closely with businesses to identify qualifying R&D activities and prepare clear, compliant claims. He combines technical expertise with a strong understanding of economics and finance to support successful outcomes. Adam also contributes to industry webinars and CPD sessions, sharing insights on R&D tax relief and HMRC requirements.