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UK merged scheme — April 2024+

Turn R&D spend into cash from HMRC.

UK limited companies doing technical R&D can reclaim up to 27% of qualifying spend under the merged scheme (or 20% taxable credit if profitable). TaxRoot prepares the Additional Information Form, technical report and HMRC submission end-to-end.

No benefit, no fee on claims above Founder Pro allowance.

Estimate your R&D claim

Quick indicative estimate using merged-scheme rates (April 2024+).

Indicative benefit
£8,100
At 16.2% effective rate — exact benefit depends on final qualifying spend, profit/loss position, and subcontracted-cost treatment. TaxRoot confirms on the free 15-min call.

Who qualifies

Does your work count as R&D?

HMRC's definition (BEIS guidelines) is narrower than most founders think. Here's the honest test — and the common false positives we have to push back on.

Likely qualifies

  • Developing new software products, features, or architecture
  • Improving existing systems for performance, scale or security
  • Integrating two systems where no off-the-shelf solution exists
  • Developing proprietary algorithms, models, or data processing
  • Creating new materials, chemicals, or manufacturing processes
  • Designing hardware, IoT devices, or embedded systems
  • Developing machine learning or AI capabilities
  • Resolving technical uncertainty where the outcome wasn't obvious

Does NOT qualify

  • —Routine website or marketing updates
  • —Standard accounting, sales, or admin work
  • —Cosmetic design or branding changes
  • —Installing or configuring third-party software "as advertised"
  • —Market research, user testing (in isolation)
  • —Trial and error without systematic technical enquiry

Qualifying costs

What spend you can claim against.

Staff costs

Salaries, NICs, pension contributions for R&D-engaged staff

Externally provided workers

Subcontractors and agency staff on R&D projects (at 65% of cost in most cases)

Software

Licence and subscription costs used directly on R&D

Consumables

Heat, light, water, materials consumed or transformed during R&D

Cloud computing

Compute, storage, hosting costs used on R&D (post-April 2023)

Data licences

Licensed datasets used to train models or inform R&D

How it works

From spend to HMRC payout in 4 steps.

01

Technical interview

30-45 min call with your competent professional (CTO / tech lead) to document the projects, technical uncertainties, and advance in science or technology sought.

02

Cost analysis

We map staff time, subcontractor invoices, cloud bills, consumables and software against each project. Gross-up NICs, apportion correctly, exclude non-qualifying spend.

03

AIF + technical report

Additional Information Form completed to current HMRC format. Technical narrative written to defend on enquiry — with competent-professional evidence.

04

CT600 amendment + HMRC submission

We amend the Corporation Tax return with the claim attached, file the AIF, and liaise with HMRC through any enquiry. Payable credit typically lands 28–40 days post-submission.

Don’t leave claims on the table.

You can amend your Corporation Tax return up to 2 years after the end of the accounting period to claim R&D relief. Year-end 31 Mar 2024? File by 31 Mar 2026. Missing the window means the money stays with HMRC.

FAQ

Founder-level R&D questions.

Which R&D tax relief scheme applies to my company?+
From April 2024, the UK merged the SME and RDEC schemes into a single scheme with a 20% taxable credit (net ~16.2%). Loss-making R&D-intensive SMEs (40%+ of spend on qualifying R&D) can still access an enhanced scheme at 27% cashback. TaxRoot will confirm which scheme applies during your claim.
How far back can I claim R&D tax relief?+
You can amend your corporation tax return to claim R&D relief up to 2 accounting periods back. If your year-end was 31 March 2024, you have until 31 March 2026 to file a claim for that year. Act before the window closes.
Do I need to file an Additional Information Form (AIF) with HMRC?+
Yes — mandatory for all claims from 8 August 2023. The AIF includes project descriptions, competent professional details, cost breakdowns and agent contact info. TaxRoot prepares and submits this for you as part of the engagement.
What is a "competent professional" for R&D purposes?+
The competent professional is the person who leads or directs the R&D — typically your CTO, technical co-founder, or lead engineer. HMRC expects their name, qualifications and relevant experience to be documented in the AIF.
Can I claim R&D if I outsourced the work?+
Yes, but with restrictions. Under the merged scheme (April 2024+), subcontracted R&D costs can generally only be claimed by the company that actually decided to undertake the R&D — not both parties. Rules changed significantly; TaxRoot reviews contracts to confirm claim eligibility.
How long does an R&D claim take?+
TaxRoot typically completes a claim in 3–4 weeks: 1 week for technical interview + cost analysis, 1 week drafting the AIF and report, 1 week client review, 1 week HMRC submission window. HMRC usually processes payable credits in 28–40 days post-submission.
Will claiming R&D trigger an HMRC enquiry?+
HMRC has tightened compliance scrutiny since 2022, especially on small claims and novel sectors. TaxRoot-prepared claims include a detailed technical report and competent professional evidence designed to withstand enquiry — we only file claims we believe are defensible on audit.
How does TaxRoot price R&D claims?+
Included in Founder Pro (from £89/month) for up to £50k qualifying spend. Above that, a success fee of 12–15% of the net benefit (only payable if HMRC pays out). No upfront fee, no fixed cost risk.

Book a free 15-min R&D call.

Describe your projects. We’ll tell you honestly whether you have a claim, and what the likely benefit is — before you commit to anything.