Can a start-up business make an R&D tax credit claim?

Published by Sandra Smith on

It is possible for a start-up business to make an R&D tax credit claim. The R&D tax credit scheme was introduced by HMRC to reward innovation and encourage business growth.  It is a valuable source of cash for businesses to invest in developing a new product, process or service.

This cash can then be used to continue developing further R&D projects and provide further investment into the business.

A new business could be eligible to make an R&D tax credit claim as long as you can demonstrate that there was an element of technological uncertainty in the research and development you were undertaking.

Many start-up businesses are innovative by definition, as they have been set up in response to a need for a new product, process, or service. If you have started your business in a new area, then there is a good chance you will be entitled to an R&D tax credit claim.

Starting a new business can create many initial overhead costs such as buying equipment, fitting out your premises and much more. If you are working on an R&D project, you may be able to claim back some of these initial costs allowing you to invest more in your business.

The qualifying revenue expenditure includes staff and subcontractor costs, materials and consumables, as well as certain types of software which are necessary to the R&D process.

It can be a complex process ensuring you claim the full amount of R&D tax credit due. You will need to provide detailed records and complete some lengthy forms.

To ensure you are maximising your claim, you will need the help of an expert, so get in touch with the R&D Taxbox team.

Find out more about the support we can provide here and get in touch with one of our knowledgeable advisers.







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