Research and Development (R&D) tax relief in the UK is a powerful incentive that rewards companies investing in innovation. When prepared correctly, a successful R&D claim can reduce a company s corporation tax or even provide a cash credit but preparing that claim requires meticulous documentation, technical justification, and compliance with HMRC s rules. In this article, we walk through everything you need to know about R&D tax relief claim preparation: from eligibility and what costs qualify, to step-by-step processes, pitfalls to avoid, and how expert firms like Swanson Reed support businesses through complex claims.

Introduction to R&D Tax Relief

R&D tax relief is a government incentive designed to encourage companies to innovate whether they re creating new products, processes, software, or making technological improvements. In essence, the UK tax system recognises that R&D activities carry inherent risks and costs, and offers relief on eligible spend to help businesses invest in future-facing projects.