Is there too much work involved to make an R&D tax relief claim worthwhile?

Accountants and innovative businesses alike are under immense amounts of pressure to keep pace with the ongoing economic challenges.

As time becomes more valuable, many find themselves questioning whether they still have the time to commit to things where the benefit may not be immediately obvious.

R&D tax reliefs do not have to be a burdensome hassle and their value can be accessed with greater ease once expert support is used.

Are R&D tax relief claims more complicated now than in the past?

When considering how much work goes into an R&D tax relief claim, there certainly seems to be more than there was in previous years – it used to be as simple as putting a number in a box.

Alongside the R&D tax relief claim itself, there is now the Additional Information Form (AIF) and potentially the Advanced Notification Form (ANF) that also need to be submitted.

Should an enquiry be launched, more work may need to be done to address the questions and concerns of HMRC.

Whether this work translates to complexity is a different matter entirely.

Some would argue that shifting from the SME Scheme and RDEC Scheme to a unified Merged Scheme has made things more straightforward, but the presence of the ERIS Scheme does add a layer of complication.

All of this represents a shift in HMRC towards a stricter view of compliance that has successfully reduced the level of fraud in R&D tax relief claims.

If accountants and innovative businesses are having second thoughts about approaching R&D tax relief claims, that is almost by design, as HMRC want to discourage casual applications to improve the overall quality of submissions.

There is a much stronger emphasis on showing due care and attention in preparing R&D claims now and a more scientific methodology is required for allocating costs. 

Whether that translates to more work centres on how confident you are in being able to define R&D for tax purposes and fully evidence it according to HMRC’s guidance.  

Are R&D tax relief claims worth the trouble?

Despite the number of hoops that now need to be jumped through to successfully submit an R&D tax relief claim, the value is as strong as ever.

With the economy biting businesses particularly hard at the moment, having a way to offset some costs and receive a boost of funds can be an effective way of keeping innovation going into the future.

Rather than relying on a project to be a commercial success or necessitating additional bank loans, R&D tax reliefs use the work that has been done to assign value.

If an advance has been sought and it genuinely represents the tackling of a scientific or technological uncertainty, then there is a good chance it will qualify for an R&D tax relief claim.

To fully unlock the value of an R&D tax relief claim and cut back on the administrative burden, seeking the support of an R&D tax consultant is wise.

We can help to process information and compile an R&D tax relief claim that meets HMRC’s criteria.

A big waste of time for accountants and innovative businesses is trying to create a claim around an invalid project.

We conduct thorough health checks on all projects, only including those that are eligible.

HMRC enquiries can be intimidating to the point where accountants and innovative businesses may shy away from submitting a claim entirely for fear of having to handle more challenges.

We offer full enquiry support, even for R&D tax relief claims not compiled or submitted by us.

This may take the form of an enquiry defence of valid projects, the reworking of partially valid projects to ensure they are fully compliant, or assistance with handling a situation where invalid projects have been erroneously claimed for.

Accountants need R&D assistance if they are to help clients with R&D, so we take on the heavy load while restoring value for you.

Get in touch to discover the true value of R&D tax relief claims.

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.