What Qualifies as R&D?
More activities qualify than you think. If you're solving problems, you're likely doing R&D.
HMRC's Official Definition
"R&D takes place when a project seeks to achieve an advance in science or technology through the resolution of scientific or technological uncertainty."
In simpler terms: If you're trying to create something new or improve something existing, and you're not sure exactly how to do it when you start, that's R&D.
The Four Key Tests
Seeking an Advance
Are you trying to create something new or substantially improve an existing product, process, or service?
Technological Uncertainty
Was it unclear at the start whether the project was technically feasible or how to achieve it?
Systematic Approach
Did you follow a planned approach with hypotheses, testing, and analysis of results?
Not Routine Work
The solution couldn't be worked out by a competent professional in the field without experimentation.
Common Qualifying Activities
Software & Technology
- • Algorithm development
- • System architecture design
- • API integrations
- • Performance optimization
- • Security enhancements
- • Machine learning
Manufacturing & Engineering
- • Process improvements
- • Material testing
- • Prototype development
- • Tooling design
- • Automation projects
- • Quality improvements
Food & Beverage
- • Recipe development
- • Shelf-life extension
- • Packaging innovation
- • Production processes
- • Nutritional improvements
- • Sustainability projects
What Doesn't Qualify
Routine Work
- ✗ Bug fixes and minor updates
- ✗ Cosmetic changes
- ✗ Market research
- ✗ Training activities
Commercial Activities
- ✗ Sales and marketing
- ✗ General business planning
- ✗ Financial management
- ✗ Routine data analysis
What Costs Can You Claim?
Staff Costs
Salaries, wages, NI, pension for R&D work
Subcontractors
External R&D work and EPWs
Software
Licenses used for R&D activities
Consumables
Materials used up in R&D
Think You Might Qualify?
Let's have a quick chat to identify your qualifying activities. Most businesses qualify for more than they expect.
Check Your Eligibility