Home
Service
R&D Tax Credit
Answer a few questions in the portal and we'll match you to suitable lenders. Need Help? Our team is on live chat.
Start Funding SearchMoney Pilot helps businesses claim R&D tax credits efficiently and accurately.
We connect you with specialists ensuring maximum benefit and compliance.
Complete a fast but in-depth overview of your finance requirements to allow our powerful matching engine to source the right lenders for you.
Engage directly with lenders in real-time, with our friendly advisors always on hand to guide you through every step of the funding journey.
Track your enquiry in real-time and seamlessly move to application— all in one place—getting you to your funds faster and with less hassle.
Money Pilot helps innovative companies access R&D tax relief confidently. We connect you with specialist providers, validate eligibility, and streamline claims with clear documentation.
With transparency and diligence, you recover cash and reinvest it where it matters.
Access rapid, flexible funding solutions tailored for immediate business needs and cash flow management:
✅ What is R&D tax credit and how does it work for UK businesses?
R&D tax credit is a UK government incentive that rewards companies for investing in innovation. Qualifying businesses can reduce their corporation tax bill or receive a cash payment from HMRC for eligible research and development expenditure. From April 2024, most companies use the merged R&D scheme, though ERIS (Enhanced R&D Intensive Support) applies to loss-making R&D intensive SMEs. Money Pilot connects businesses with specialist R&D tax advisers — FCA regulated (FRN: 968705), zero broker fees.
R&D tax credits allow UK companies to claim a tax reduction or cash refund from HMRC for spending on qualifying research and development activities. The incentive is designed to encourage innovation by reducing the net cost of R&D investment — making the UK a more attractive location for companies developing new products, processes, software, and services.
Bank of England held base rate at 4.25% in June 2026 — waiting for inflation to cool.
73% of UK SMEs expect to grow in the next 12 months — confidence remains strong.
From 1 April 2024, the previous SME and RDEC schemes were merged into a single scheme for most companies. The merged scheme provides an above-the-line credit of 20% of qualifying R&D expenditure, resulting in an effective corporation tax saving of approximately 15p for every £1 of qualifying spend (for companies paying 25% corporation tax). Loss-making R&D intensive SMEs — where R&D expenditure represents at least 30% of total expenditure — may qualify for Enhanced R&D Intensive Support (ERIS) at a higher rate.
R&D tax credit claims are submitted through the company's corporation tax return. HMRC processes most claims within 28 days for compliant submissions. Money Pilot connects businesses with specialist R&D tax advisers who maximise qualifying expenditure and ensure full HMRC compliance. Zero broker fees. FCA regulated (FRN: 968705).
Many businesses significantly under-claim their R&D tax credit entitlement because they apply a narrow interpretation of what qualifies. Specialist advisers identify qualifying activities and expenditure that in-house teams and generalist accountants routinely miss.
What specialist advisers identify that generalists miss:
R&D tax credits reward UK businesses for innovation — reducing corporation tax or delivering a cash payment from HMRC. Specialist advisers consistently identify more qualifying expenditure than generalist accountants.
These four misconceptions about R&D tax credits cause UK businesses to either not claim at all or significantly under-claim. Understanding the reality helps businesses access the full benefit they are entitled to.
R&D for tax credit purposes is defined by the advancement of science or technology and the resolution of technological uncertainty — not by where the work happens or what the business does. A software company developing a novel algorithm qualifies. A food manufacturer creating a new production process qualifies. An engineering firm solving a structural challenge that competent professionals in the field could not readily solve qualifies. R&D happens in offices, factories, construction sites, and kitchens as much as in laboratories. The test is the technical challenge, not the setting.
Generalist accountants apply a conservative interpretation of R&D qualification criteria and frequently advise clients they do not qualify when a specialist R&D tax adviser would identify significant qualifying activities. The technical assessment of what constitutes advancement of science or technology and what constitutes technological uncertainty requires specialist knowledge of both HMRC's guidelines and the specific sector. Many businesses that were told they do not qualify have subsequently made successful claims with specialist advisers. A second opinion from an R&D specialist is always worthwhile.
Specialist R&D tax advisers typically work on a contingency basis — charging a percentage of the benefit claimed rather than a fixed fee, meaning there is no cost to the business if no claim is made. The adviser handles the technical report, the qualifying expenditure calculation, and the HMRC submission. The business's primary input is providing information about the R&D activities undertaken and the staff time involved. Most claims take 4 to 8 weeks from initial consultation to HMRC submission and 28 days from submission to receipt of the benefit.
Loss-making companies can also benefit from R&D tax credits. Under the Enhanced R&D Intensive Support (ERIS) scheme for loss-making R&D intensive SMEs (where qualifying R&D is at least 30% of total expenditure), companies can receive a cash payment from HMRC at an enhanced rate rather than a tax reduction. This cash injection is particularly valuable for early-stage technology and life sciences companies that are not yet profitable but are investing heavily in developing their core product or technology. Money Pilot connects loss-making R&D businesses with specialist advisers who understand the ERIS scheme.
Bank of England held base rate at 4.25% in June 2026 — waiting for inflation to cool.
73% of UK SMEs expect to grow in the next 12 months — confidence remains strong.
Under the merged scheme from April 2024, qualifying companies receive an above-the-line credit of 20% of qualifying R&D expenditure. For a company paying 25% corporation tax, this equates to approximately 15p of benefit for every £1 of qualifying spend. For a company with £500,000 of qualifying R&D expenditure, the benefit is approximately £75,000. Loss-making R&D intensive SMEs under ERIS may claim at a higher rate. The actual benefit depends on the specific scheme applicable, the company's tax position, and the qualifying expenditure identified.
R&D tax credit claims can be made up to two years after the end of the accounting period in which the qualifying R&D expenditure was incurred. For a company with a December year end, the R&D claim for the year ended December 2023 must be submitted by December 2025. Claims outside this two-year window cannot be made. Many businesses have unclaimed R&D tax credits from prior years within the window — a specialist adviser reviews prior year potential as part of the initial consultation.
HMRC requires contemporaneous records demonstrating that qualifying R&D activities took place — project records, technical documentation, staff time records, and supplier invoices. Since the introduction of HMRC's Additional Information Form (AIF) requirement, all R&D claims must be submitted with a detailed technical narrative describing the projects, the technological uncertainties addressed, and how they were resolved. Specialist advisers compile this narrative from interviews with the technical team, significantly reducing the burden on the business.
Yes — software development is one of the most common qualifying R&D activities for UK businesses. Developing novel algorithms, creating new software architectures, solving technical integration challenges, and building new platforms where the technological approach is not readily deducible from existing knowledge all qualify. Routine software development — using standard frameworks to build standard functionality — does not qualify. The test is whether a competent software engineer could readily solve the technical challenge; if yes, it does not qualify. If not, it likely does.
HMRC processes most compliant R&D tax credit claims within 28 days of receipt for claims submitted online through HMRC's portal. Claims that require HMRC enquiry — where HMRC asks additional questions about the qualifying activities — take longer. The risk of an HMRC enquiry is reduced by a well-prepared technical narrative that clearly demonstrates qualification. Specialist advisers who submit many claims per year understand what HMRC scrutinises and prepare claims accordingly.
Money Pilot connects qualifying businesses with specialist R&D tax advisers who maximise the qualifying expenditure identified, prepare a compliant HMRC submission, and manage any HMRC enquiry. We also connect businesses to R&D advance funding — loans secured against the anticipated R&D tax credit refund that provide cash before HMRC processes the claim. Zero broker fees. FCA regulated (FRN: 968705). Call 020 4634 8617.
Disclosure: Money Pilot Ltd (FRN: 968705) is an Appointed Representative of Yellow Stone Finance Group Ltd which is authorised and regulated by the Financial Conduct Authority (FRN: 814533). Yellow Stone Finance Group Ltd is a credit broker not a lender. Money Pilot Ltd is Registered in England and Wales No: 13621432. You should always make sure you are able to afford any repayments as late or missed payments can affect your credit rating and access to future finance.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.