R&D Tax Credits

Claim back thousands in tax relief for investing in innovation and product development

What Are R&D Tax Credits?

R&D (Research & Development) Tax Credits are a UK government incentive designed to reward businesses for investing in innovation. If your company is developing new products, processes, or services—or improving existing ones—you could be eligible to reclaim a significant portion of your R&D costs.

Whether you're a startup or an established business, R&D tax credits can offer a valuable cash injection or corporation tax reduction, supporting continued growth and innovation.

At The Funding Group, we help businesses identify qualifying activities, prepare claims, and recover the maximum amount from HMRC—efficiently and compliantly.

Types of R&D Tax Relief

There are two main schemes depending on the size and structure of your business:

SME R&D Tax Relief

  • For companies with fewer than 500 staff and under €100m turnover

  • Claim up to 27% of qualifying R&D expenditure as a cash rebate or tax reduction

  • Applicable even for loss-making companies

R&D Expenditure Credit (RDEC)

  • For larger companies or SMEs receiving certain grant funding

  • Tax credit of around 20% of qualifying R&D costs

  • Treated as taxable income, offsetting corporation tax liability

We guide businesses through both schemes and help optimise claims based on your activity and status.

Typical Terms & Key Features

  • Rebate Value: Up to 27% for SMEs or 20% via RDEC

  • Eligible Costs: Staff salaries, prototypes, software, subcontractors, and more

  • Claim Period: Up to 2 years retrospectively from end of accounting period

  • HMRC Processing Time: 4–12 weeks on average

  • Claim Method: Through your Corporation Tax return with a detailed R&D report

  • Sectors: Technology, engineering, construction, manufacturing, healthcare, food, and more

If your team is solving technical challenges, there’s a strong chance you qualify—even if your project wasn’t successful.

Who Can Claim R&D Tax Credits?

You may qualify if your business:

  • Is UK-based and pays Corporation Tax

  • Employs staff working on product, process, or system development

  • Faces technical uncertainties during projects

  • Is improving or creating new solutions, even incrementally

  • Operates in tech, software, manufacturing, construction, or engineering

  • Has invested in innovation, even without external grant funding

Many businesses are eligible without even realising their day-to-day problem-solving qualifies as R&D.

Benefits of R&D Tax Credits

  • Receive a cash rebate or reduce your Corporation Tax bill

  • Support future innovation with recovered funds

  • Improve cash flow, especially for startups and scale-ups

  • No impact on equity or debt position

  • Available even on failed projects

  • Claim for the last 2 accounting years

  • Low risk when submitted correctly with supporting documentation

Thousands of UK businesses claim R&D tax credits every year—are you leaving money on the table?

Ready to Claim R&D Tax Credits?

At The Funding Group, we make claiming R&D tax credits simple. Our team will review your business activity, calculate your eligible claim, and prepare all supporting documentation to HMRC standards—ensuring compliance and maximum value.

Get in touch today for a free R&D eligibility review.