Features
How do R&D tax credits work for startups?
Merged Scheme
For startups conducting R&D but spending less than 30% of total costs on it, offering up to 16.2% tax relief as a credit or refund. It applies to both profit-making and loss-making SMEs.
Enhanced R&D intensive support (ERIS)
For startups where at least 30% of total spending is R&D, offering a 27% cash credit. Designed for loss-making, innovation-heavy businesses such as deep-tech and AI.
Not sure which R&D scheme is right for your startup?
Our quick eligibility checker will help you determine which scheme applies to your business in just a few simple questions.
R&D Tax Credits Eligibility Checker
What costs are eligible for R&D tax credits?
HMRC defines R&D activities as work that seeks to achieve an advance in science or technology. Eligible costs include:
Staff Costs
Salaries, wages, employer NIC contributions, and pension costs for employees directly involved in R&D. This includes technical staff, developers, and engineers working on innovation.
Contracted R&D
Payments to third-party specialists or research firms for carrying out R&D activities on your behalf. This includes outsourced development, research, testing, and technical problem-solving.
Software Costs
Cloud computing, data processing, AI/ML tools, and software licenses essential for R&D activities. This includes development environments, analytics tools, and simulation software.
Prototyping & Testing
Costs of materials, components, and consumables used in building and testing prototypes. This covers lab testing, experimental production, and iterative development.
Estimate your startup's R&D tax credits.
How we help startups with R&D tax credits.
Navigating tax credits can be complex but it doesn't have to be. Our specialist R&D tax team ensures you claim the maximum amount while staying compliant with HMRC.
1
Free Consultation
We start with a free consultation to learn about your business, your projects, and how they fit within the SME Loss-Making Intensive Scheme. Our experts assess your eligibility and determine whether your activities qualify for R&D tax relief.
2
Defining the R&D Project
Once we confirm your eligibility, we work with you to clearly define the scope of your R&D projects. We identify technological advancements, uncertainties, and qualifying costs to ensure your claim is fully justified.
3
Technical Report
Our team drafts a detailed technical report that explains how your R&D activities meet HMRC’s criteria. This includes descriptions of the innovation, the challenges you faced, and the processes involved in your development work.
4
R&D Cost Review
We conduct a full financial analysis to identify all eligible R&D costs, including staff salaries, subcontractor fees, software, and materials. This ensures you maximize your claim while maintaining full compliance with HMRC guidelines.
5
Submission to HMRC
We prepare and submit your claim through your corporation tax return, ensuring all required documentation is provided. Our experts handle the entire process to reduce the risk of HMRC delays or queries.
6
HMRC Liaison & Claim Success
If HMRC requests further information, we manage all communication on your behalf, providing any additional evidence needed. Once approved, you receive your tax relief or cash credit.
Why choose startup cfo?
With a deep understanding of startup challenges, a hassle-free process, and a proven track record, we help you unlock the funding you need to scale and innovate.
Startup Specialists
Our expertise is tailored to the unique challenges of innovation-driven startups, ensuring your claim is fully optimized.
Competitive Rates
Working exclusively with early-stage startups means we are able to streamline our processes and offer pricing that is cost-effective.
Proven Success
Our expertise has helped tech startups successfully claim R&D tax relief, securing vital funding to reinvest in innovation.
Frequently Asked Questions about R&D Tax Credits.
Everything you need to know.
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