For accounting periods beginning on or after 1 April 2024, most claimants use the merged R&D scheme, which works as an above-the-line expenditure credit similar to the former RDEC.
Loss-making, R&D-intensive small and medium enterprises may access enhanced support under the intensive route. The right path depends on company size, profitability, and R&D intensity.
HMRC now requires additional information to be submitted before or with the claim, and has increased compliance scrutiny, so documentation quality matters more than ever.
Who qualifies
- UK companies subject to corporation tax that carry out qualifying R&D seeking an advance in science or technology.
- R&D-intensive SMEs that are loss-making may qualify for the enhanced intensive support.
- Eligibility is based on resolving scientific or technological uncertainty, not on sector.
Eligible activities
- Projects seeking an advance in a field of science or technology by resolving uncertainty a competent professional could not readily resolve.
- Qualifying costs typically include staff, externally provided workers, subcontractors (route-dependent), consumables, software, and certain data and cloud costs.
Typically not eligible
- Advances in the arts, humanities, social sciences, or economics.
- Routine work with no scientific or technological uncertainty.
- Commercial, cosmetic, or aesthetic changes without a technological advance.
How a claim works
- 1
Confirm the scheme and route
Determine whether the merged scheme or the R&D-intensive SME route applies to your accounting period.
- 2
Check pre-notification
Establish whether you must notify HMRC of your intent to claim within the required window.
- 3
Define the advance and uncertainty
Document the sought advance and the scientific or technological uncertainty for each project.
- 4
Compile the additional information form
Prepare the project and cost breakdown HMRC now requires alongside the CT600.
- 5
Submit and retain support
File with the return and keep evidence ready for HMRC compliance checks.
What to document
- Project narratives identifying the advance sought and the uncertainty resolved.
- Cost analysis by category with apportionment for partial R&D staff.
- Records of subcontractor and externally provided worker arrangements.
- Evidence supporting data, cloud, and software cost inclusion.
Common pitfalls
- Missing pre-notification and losing the ability to claim.
- Framing commercial progress instead of a scientific or technological advance.
- Incomplete additional information forms triggering delays or rejections.
- Underestimating the current level of HMRC compliance scrutiny.
Questions to ask an advisor
- “How do you handle the merged scheme versus the R&D-intensive route decision?”
- “Do you manage HMRC pre-notification deadlines for new claimants?”
- “How do you prepare the additional information form and defend enquiries?”
- “Is your technical narrative written with input from a competent professional in the field?”
Frequently asked
Has the UK R&D scheme changed?
Yes. For accounting periods beginning on or after 1 April 2024 most companies use the merged scheme, with a separate enhanced route for R&D-intensive loss-making SMEs. Confirm your position with an adviser.
Do I need to notify HMRC before claiming?
Some companies must submit a claim notification within a set window. Missing it can prevent a claim, so check the rule early.
What counts as qualifying R&D?
Work seeking an advance in science or technology by resolving uncertainty that a competent professional could not readily resolve.