How useful is HMRC’s outline of R&D tax relief promotional material?

The labyrinthine nature of the R&D tax relief guidance is often given as a reason why accountants struggle to support innovative businesses who are seeking to make a claim.

It can be challenging to know where exactly to look and be confident that one excerpt is being understood when taken out of the broader context of the guidance.

Seemingly in response, HMRC has issued promotional material that serves to outline R&D tax relief in a way that is more understandable to a broader audience.

As R&D tax consultants, we aim to determine the usefulness of the materials while providing the insights that can empower accountants to help clients with R&D tax relief.

What is contained in the outline of R&D tax relief promotional material?

To escape from the dense guidance that is the go-to source of information concerning R&D tax relief claims, the outline seeks to be exactly that.

There is a brief summary of what the R&D tax relief scheme is and who may be eligible to apply.

The outline signposts users to the interactive tool that is designed to provide a general sense of whether a project is likely to include activities that count as R&D.

However, there are limitations to what the outline offers.

As the onus seems to be on directing people to review the other tools or guidance that exists elsewhere, there are some core considerations that have been left by the wayside.

Competent professionals are not referenced at all in the outline and there is no mention of seeking a meaningful advance in science and/or technology.

While streamlining the guidance to create an effective entry point is understandable, there is a risk that the brevity of this outline may falsely embolden businesses who have not undertaken valid R&D to pursue a claim.

Will the outline of R&D tax relief promotional material help make claims more accessible?

There is a question over whether or not R&D tax relief claims should be more accessible.

Since HMRC set about tackling the rates of error and fraud in the sector, the number of claims has fallen while the value of claims has increased.

This indicates that those who achieve genuine advances are still benefiting from the system.

However, accountants and innovative businesses are keenly aware that the fear of enquiry or a concern of misunderstanding the guidance could be holding back legitimate claims.

For those who have done R&D but are too fearful to claim for it, there does need to be some measure of reassurance and awareness that a claim is possible and will benefit the business.

The brevity of the outline may inspire some conversations, it does point towards speaking to a tax advisor, which could result in it being more beneficial for the sector than it initially seems to be.

Working with an R&D tax consultant remains the most effective way of staying compliant with HMRC’s guidance, just as working with an accountant greatly increases the likelihood of getting your accounts in order.

Our team can work with accountants and innovative businesses to determine the validity of research done and help prepare R&D tax relief claims.

This extends beyond compliance as we are able to advise on how to cover the full spectrum of qualifying expenditure in a claim so that the relief has a greater impact on the next stage of innovation.

To get the level of understanding that will help you and your clients make R&D tax relief claims, get in touch with our team.

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.