Frequently asked questions
Find the answers to some of the most common questions our clients ask us and links to more information.
About R&D Tax Credits
What work qualifies as R&D?
For more information and examples - view this page.
Who can claim R&D tax credits?
Any limited companies that have conducted qualifying work can claim R&D tax relief.
However, there are two schemes:
- the Research and Development Expenditure Credit (RDEC) which is open to all companies.
- the Enhanced R&D Intensive Scheme (ERIS) which is open to SME's who are loss making and spending more than 30% on R&D.
For specialist help with either scheme - get in touch.
How far back can you claim R&D tax credits?
You can claim R&D tax credits up to 2 years after the end of the accounting period when the R&D took place.
For example, if you conducted R&D in your accounting period ending 31st March 2025, you would need to have made your claim by 31st March 2027.
However, if you haven't submitted a claim previously, you will need to submit a Claim Notification Form within 6 months of the end of your accounting period, or you will be barred from claiming.
How much will I get back?
How is R&D Tax Relief calculated?
Most companies will use the Research and Development Expenditure Credit, which provides a 20% credit based on your eligible R&D expenditure. This credit is then taxed at 25% so you will receive a benefit of about 15% of your R&D expenditure.
If you claim with ERIS, the scheme for loss making companies spending 30% or more on R&D, you will receive up to 26% of your R&D expenditure as a payable credit.
What if I used a sub-contractor or freelancer for R&D?
You can generally claim for 65% of the payments made to unconnected parties.
Find out more here.
What if we've received grant funding or subsidies for our R&D?
Under the new system (from 1/4/2024) you can receive R&D tax relief even if your project has been subsidised by a grant or state aid.
What about R&D Intensive SME's
From 1st April 2024 - companies that are loss-making and spending more than 30% of their revenue expenditure on R&D will qualify for higher rates of relief. Overall they could claim a payable tax credit of up to 25% of their R&D expenditure.
The Claims Process
How long will a claim take?
We aim to complete your R&D tax claim documentation within 2 weeks of our review meeting and receiving the required information from you.
Your claim will then need to be submitted to HMRC. Once submitted, claims are normally paid out within 40 calendar days.
To find out more about the claims process - try this page.
What is the Additional Information Form?
The Additional Information Form (AIF) is a digital form that needs to be submitted to HMRC before your R&D Tax Relief claim is submitted in your companies tax return. We complete this form as part of our service.
What is the Claim Notification Form?
The Claim Notification Form needs to be submitted if you haven't made an R&D claim within the last 3 years. It tells HMRC that you intend to submit a claim, and gives you until 2 years after the end of the accounting period to make the submission. Without submitting it, you will need to make your R&D Tax Claim submission within 6 months of the end of the accounting period.
How much time will I need to spend on a claim?
When you work with Zest, our goal is to make the claims process as easy as possible for you. Some clients spend less than half a day on their claim, including time for meetings, information gathering, and reviewing their claim documents. But in reality, it will always depend on your scenario, the quality of your records, and the number of projects in your claim.
For more information on the claims process - try this link.
Will the R&D tax relief be made as a payment to me?
If you are profit making you will receive a reduction in your corporation tax bill or liability. If you have already paid your corporation tax this should lead to a payable refund.
If you are loss making you will receive a payable credit from HMRC.
How do Zest charge?
What records will Zest produce?
We'll create a document that explains what R&D tax scheme your company qualifies for, why the R&D work you do qualifies for relief, and how much cost can legitimately be claimed.
We'll also determine how much you will receive, work with your accountant to submit the claim to HMRC, and support you with chasing HMRC for payment if required.
Will Zest work with my accountant?
Can HMRC open an enquiry and will you defend it?
Part of our job is to help you minimize the risk of HMRC opening an enquiry into your R&D tax claim. However, they can't always be avoided.
Where an enquiry is instigated, we will defend it at no extra cost.
