Thinking Of Claiming R&D Tax Relief? Use HMRC’s New Online Checking Tool Before You Submit
Claiming Research and Development (R&D) tax relief can be invaluable for UK businesses investing in innovation. But it is an area where we continue to see significant levels of error and ineligible claims, so it is important to ensure your submission is accurate and genuine, explains Jerome Cornwall, HMRC’s Deputy Director, Incentives and Reliefs.
To help UK businesses to do this, HMRC has launched a new interactive tool on GOV.UK. This tool adds to existing guidance for claimants and is designed to help you gauge whether your project meets the criteria to qualify as R&D for tax purposes before you submit your claim. This is especially useful for those who are new to R&D tax relief.
What is the new R&D interactive tool?
It’s an online checker developed by HMRC to help assess whether projects involve R&D activities for tax purposes. It introduces key concepts, explains what HMRC is looking for and signposts relevant guidance to support your decision-making.
Who should use it?
This new tool is useful for:
businesses making their first R&D claim
companies with limited experience or knowledge of R&D tax relief
anyone unsure whether their project qualifies or needs additional support
While it’s not mandatory, HMRC strongly encourages its use to reduce errors and improve the accuracy of claims submitted.
How does it work?
The tool asks a series of structured questions about your development project. You will need a competent professional to answer some of these questions. Based on your answers, it provides HMRC’s view on whether your activities are likely to qualify as R&D for tax purposes.
You can use the tool to help you:
understand the key concepts around qualifying R&D projects
check what information you need before making a claim
check if your project involves R&D for tax purposes
We recommend that you keep a record of your answers as you may need to confirm the information you inputted at a later stage. HMRC will not retain any of your answers or outcomes from using the tool.
Does using the tool guarantee my claim will be accepted?
Not entirely but it’s a good indicator. The tool will assess the eligibility of your project based on the information you provide. If any of this information is inaccurate, the assessment of your project when a claim is submitted may differ.
It doesn’t cover all qualifying conditions. You will still need to meet other requirements - such as eligible costs and correct scheme selection - to submit all the relevant forms for a valid claim.
What are common pitfalls to avoid when claiming R&D tax relief?
Don’t just assume all product development qualifies - R&D must involve elements of scientific or technological uncertainty.
Remember that only certain project costs are eligible for relief. You can check the which categories are included at Check what Research and Development (R&D) costs you can claim - GOV.UK
Some customers will need to notify HMRC within six months of the end of their accounting period, check if this applies to you and be sure not to miss that notification deadline. This will be required for all first-time claimants. Tell HMRC you want to claim Research and Development (R&D) tax relief - GOV.UK
In summary: Check before you claim
Before submitting your R&D tax relief claim, use HMRC’s new claims guidance tool to check whether elements of your project qualify. It’s a simple and effective way to reduce risk, improve accuracy, and ensure your innovation gets the financial support it deserves.
Visit the GOV.UK R&D Tax Relief Guidance under the ‘Further information’ section for more information and to see if your project includes activities that qualify as R&D for tax purposes.
