Discover how your business can benefit from R&D tax credits. Learn about eligibility, the claims process, and how Spot On Network supports you every step of the way.
From 1 April 2024, the UK’s R&D tax relief system was streamlined into a single, unified scheme. The previously separate SME and large company regimes were combined into one programme offering a standard R&D Tax Credit rate of 20%, meaning all qualifying businesses now claim at the same rate.
The exception applies to loss-making SMEs that qualify as R&D intensive — defined as spending more than 30% of their total costs on research and development. These businesses can claim an enhanced 27% Tax Credit.
Costs incurred before 1 April 2024 remain claimable under the former SME and RDEC schemes, with claims able to be submitted retrospectively for up to two years. These legacy schemes will continue to operate until April 2026.
Many businesses question whether their R&D claims truly capture all qualifying activity. Our R&D Tax Credit calculator is an ideal first step, helping you estimate what you may be eligible to receive.
After using the calculator, our experienced team can guide you through the entire process. We do more than just run the numbers, we provide clear advice and practical support to give you complete confidence in your claim. We can also meet with you in person and keep you informed of any changes from HMRC, ensuring you stay ahead and maximise every opportunity.
R&D tax relief can seem complex, but with the right support, it doesn’t need to be. Our multi-disciplinary team of tax, finance and technical specialists works with you from the initial review through to submission and any HMRC queries, making sure your claim is thorough, accurate and fully evidenced.
Profit-making SMEs can claim R&D tax relief on their qualifying expenditure, with an additional 86% of eligible costs available as a deduction against annual profits. At a credit rate of up to 21.5%, an investment of £500,000 in R&D could generate a benefit of up to £107,500.
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Loss-making SMEs may be eligible to claim a payable R&D tax credit. With an incentive rate of up to 18.6%, a business investing £500,000 annually in R&D could potentially receive up to £93,000 in cash back.
Loss-making SMEs spending at least 30% on R&D qualify as R&D intensive and can claim a 27% Tax Credit, £500,000 in R&D could yield up to £135,000.
Feature
Pre-April 2024
Post-April 2024
SMEs
Could claim up to 33% (loss-making)
Now claim 20% taxable credit (net ~15%)
Large Companies
Used RDEC (13%–20%)
Same 20% taxable credit
Subsidised R&D
Penalised under SME scheme
No longer penalised
Overseas R&D
Some flexibility
Now restricted unless justified
As a first step, our team will determine your eligible R&D expenditure. This typically includes:
• Direct staff costs
• Contractors and outsourced R&D activities
• Consumables and raw materials
• Software licences
We’ll also assess how much time your business has allocated to each of these areas during the accounting period. By using our R&D Tax Credit calculator, you can get an estimate of the potential value these costs could contribute to your claim.
If your company is profit-making, we’ll enhance your qualifying expenditure where applicable — for example, eligible SMEs may be able to deduct up to 130% of their qualifying R&D costs from annual profits, subject to meeting specific criteria. You can find further details on the conditions that apply.
For loss-making businesses, we’ll review your qualifying spend and determine whether it’s more beneficial to carry the loss forward to offset future taxable profits or to claim a payable tax credit from HMRC.
See how our platform streamlines your R&D tax credit claims, saving you time and money.
Quickly assess eligibility and claim R&D tax credits with step-by-step support.
Easily keep up with regulations and submit accurate claims every year.
Redirect savings into new projects and keep your business ahead.
Discover expert guidance for your company’s next step.
Find clear answers to common questions about Spot On Network’s services, eligibility, and support.
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