Every year, thousands of UK businesses miss out on valuable R&D tax credits for SMEs due to incorrect or inadequate claims. At randd, we have made over 5,000 successful claims for our clients, a large proportion of those through the R&D SME scheme.
With complex and ever-changing HMRC guidelines, even eligible businesses can face delays or scrutiny without accurate preparation. That’s why we’ve created a free, expert-built R&D tax credit claim template for SMEs – helping you prepare faster, claim more and reduce risk.
Throughout this guide, you will discover:
- What the R&D tax credits SME scheme process is & how it can help your business
- Who qualifies for the R&D SME scheme
- What costs can be included in an R&D tax credit SME claim
- Our R&D tax credit claim template for SMEs
- How our expert R&D tax consultants can help you submit a compliant claim & optimise your return
| Want to Understand the R&D SME Scheme in More Detail? Explore our in-depth guide to R&D tax credits for small and medium-sized enterprises, including what qualifies, how you can claim & key updates for 2025. Read the full SME Tax Credit guide & unlock valuable insights to optimise your claim. |
What is the R&D Tax Credit SME Claim Process & How Can it Help Your Business?
The R&D tax credit SME scheme is a UK government incentive designed to reward small and medium-sized businesses for investing in innovation, from developing new products and processes to improving existing technologies.
If your business is exploring scientific or technological breakthroughs, this scheme could deliver a significant financial return in the form of either a Corporation Tax reduction or a cash payment from HMRC.
To qualify for the R&D SME scheme, your company must meet the following criteria:
| Eligibility Criteria | Summary |
| UK Limited Company | Must be subject to Corporation Tax & currently trading. |
| SME Size Criteria | < 500 staff & turnover < €100m or balance sheet under €86m. |
| Innovative R&D Projects | Must aim for scientific/technological advancement & address technological uncertainty. |
| Relates to Your Trade | Projects must support your commercial operations. |
| No Other Aid | Projects must not have received any other notifiable State Aid. |
| Thinking of Submitting Your R&D Claim Solo?
DIY claims often miss out on thousands in eligible costs or trigger HMRC enquiries due to incorrect submissions. Don’t leave money on the table – discover how working with our dedicated R&D tax specialists can boost your claim & protect your business. Read: R&D Tax Specialists vs DIY Claims – How Much Are You Missing Out On? |
Benefits of the R&D SME Scheme
Whether you’re developing software, improving manufacturing processes or solving technical challenges, the R&D tax credit scheme for SMEs can transform your investment in technological innovation into a major financial asset.
Here’s how your business benefits:
| Reduced Corporation Tax or cash payments for loss-making SMEs. | Boost ROI on R&D spend, with up to 186% enhancement on relevant costs. |
| Reinvestment-ready funds to drive growth, hiring & future innovation. | Advance Assurance for new claimants guarantees peace of mind for 3 years. |
| Fast-track your progress with new-found financial breathing room. | Ongoing support from experts at randd, including full HMRC enquiry handling & claim defence. |
| See How We’ve Helped Other UK SMEs Optimise Their Successful Claims Curious how much your business could reclaim? Don’t just take our word for it – discover real-life examples of how randd has helped companies across a range of sectors unlock tens of thousands in R&D tax relief for SMEs. Explore our case studies & discover what’s possible with specialist R&D support. |
What Costs Can You Include in an R&D Tax Credit SME Claim?
The R&D SME scheme focuses on how a project is developed, not just what it is. Qualifying projects must meet HMRC’s definition of SME R&D for tax purposes. Your company is likely eligible if:
- You’re aiming to achieve a scientific or technological advance – not just internal improvements
- Your project tackles technical or scientific uncertainties that aren’t easily solved with existing knowledge
- You’re using a systematic approach (e.g. trials, prototypes, testing, iteration)
- Your work relates to your company’s trade and benefits your core operations
Common qualifying activities include:
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How Far Back Can You Claim R&D Tax Credits?
R&D tax credits for SMEs can typically be claimed for 2 years after the end of your accounting period.
That means if your company has carried out eligible R&D projects but hasn’t yet claimed, you can still submit a backdated claim for the last 2 closed financial years – as long as it’s within the legal deadline.
At randd, our expert R&D accountants track deadlines for you and ensure every opportunity is optimised, with full transparency and specialist support on documentation gathering and submission.
Are R&D Tax Credits Taxable?
Tax credits claimed under the R&D SME scheme are not considered taxable income. Instead, R&D tax credits are applied in one of two beneficial ways:
- For profit-making companies: The relief typically comes as a reduction in your Corporation Tax liability, lowering the amount you owe HMRC.
- For loss-making companies: You may receive a payable tax credit, which appears as non-taxable income in your profit-and-loss account (income statement).
| Want to Know How Much You Could Claim?
Use our quick & easy R&D Tax Credit Calculator to estimate how much relief your business could receive. It only takes a minute – and the results might surprise you! Try the calculator today & take the first step towards unlocking your claim. |
Introducing Our R&D Tax Credit Claim Template for SMEs
Claiming through the R&D SME scheme can unlock significant financial relief, but only if your claim is prepared correctly. That’s why we’ve created our R&D tax credit claim template for SMEs; a practical tool to help you identify qualifying costs and estimate your potential benefit.
While our template is a powerful first step, misapplying eligibility rules or submitting incorrect calculations can lead to delays, enquiries or rejected claims. In 2024, HMRC flagged over £441 million in inaccurate R&D claims – often from businesses without specialist support.
That’s where randd makes a difference.
With over 5,000 successful claims, we go beyond templates. We make your claim robust, optimised and fully compliant, so you can focus on innovating, not navigating HMRC red tape.
R&D Tax Credit Claim Template for SMEs
Why Choose randd as Your R&D Tax Consultant?
When it comes to claiming R&D tax credits, expertise matters. With HMRC intensifying scrutiny and compliance rules shifting, choosing the right R&D tax consultant can mean the difference between a smooth, successful claim and costly delays or rejections.
At randd, we don’t just prepare your R&D claim – we defend it, optimise it and ensure it aligns with the latest HMRC guidance. Here’s why SMEs trust Randd:
- 5,000+ successful claims submitted with full documentation and defence
- Dedicated tax experts and technical writers who speak your language — and HMRC’s
- Full-service support, from claim prep to enquiry resolution
- HMRC-compliant Additional Information Forms (AIFs) handled for you
- Up-to-date with the 2024+ scheme changes, including the new merged RDEC scheme and ERIS
Download our free R&D claim template today to get started – and when you’re ready to optimise your return and protect your claim, contact us for expert support and specialist guidance.
