Yasmin Dalton
Consultant
If you’re preparing to claim R&D Tax Relief, one of the most important things to get right is understanding what counts as a qualifying R&D activity and what doesn’t.
This distinction can make a big difference to the value of your claim, and getting it wrong could lead to delays, reductions, or even an enquiry from HMRC. So, whether you’re new to R&D tax claims or simply want to be sure you’re on the right track, it’s well worth taking a closer look at what qualifies and what doesn’t.
In this article, we’ll break it down clearly, with examples, and explain how you can be confident your claim includes the right activities.
HMRC defines qualifying research and development as work that seeks to make an advance in science or technology, while attempting to overcome scientific or technological uncertainty.
In simpler terms, the activity must go beyond routine improvements or known solutions. You need to be aiming for something new or improved in a way that isn’t straightforward, and where a competent professional in the field would not immediately know how to achieve the result. A competent professional is someone with relevant expertise, knowledge of the field, and accumulated experience. Crucially, the advance must be in the overall knowledge or capability in a field of science or technology, not just an advance in your company’s internal understanding or capabilities. However, if the solution isn’t publicly known or readily deducible, it can still be considered a qualifying advance.
It also needs to follow a structured process. That means planning, testing, analysing, and refining – rather than trial and error or lucky guesses.
If your business is trying to develop something new, improve how something works, or solve a technical problem where the solution is not already widely understood, you may well be carrying out qualifying R&D activities.
There are lots of different types of work that can qualify for R&D Tax Relief across a wide range of sectors. For example, you could be:
What all of these have in common is a clear scientific or technological challenge, and a genuine attempt to overcome it through systematic research and development. These are core examples of qualifying R&D activities under HMRC’s guidelines.
Book an appointment with our R&D specialists, and we can help determine if your project qualifies and discuss your next steps.
In addition to the direct R&D work, certain activities that support your qualifying R&D project can also be claimed. These are known as “qualifying indirect activities” and often include:
Understanding which of these support tasks fall under qualifying R&D activities can help ensure you’re maximising your claim without including ineligible work.
While many parts of a project might feel innovative or important, that doesn’t necessarily mean they qualify for R&D Tax Relief.
Some common examples of non-qualifying R&D activities include things like routine maintenance or updates, cosmetic changes to products, or general business tasks. These types of work might be necessary, but they don’t count as eligible R&D.
Activities that are purely commercial, such as market research, advertising, customer support, or financial planning, also fall outside of HMRC’s definition.
Similarly, if your team is just replicating existing solutions without adding anything new or improving how they work, that wouldn’t qualify either.
For example, updating the colour scheme of a user interface, rolling out a standard software installation, or scaling up an existing process without solving a new technical problem would all be considered non-qualifying.
It’s not always black and white, but asking yourself a few key questions can help you figure it out:
If the answer to those questions is yes, there’s a good chance the R&D activity is eligible.
Identifying the right activities is not just about ticking boxes. It directly affects how much tax relief your business can claim and how confident you can be in the accuracy of your submission.
Including non-qualifying activities in your claim could lead to questions from HMRC, which might delay your payment or reduce the amount you receive. Worse still, it could result in penalties if HMRC believes the claim was careless or inaccurate.
On the other hand, if you’re not sure what qualifies and end up leaving out eligible work, you could be missing out on valuable relief that your business is entitled to.
This is where TBAT Innovation comes in. Our team of R&D tax experts work with companies across all sectors to help them identify which activities meet HMRC’s criteria and which do not.
We take the time to understand your projects in detail and support you in preparing a fully compliant and well-documented R&D tax relief claim. Whether you’re applying under the SME R&D scheme or the RDEC scheme, we’ll make sure your claim is clear, accurate, and backed up with the right evidence.
With HMRC becoming increasingly rigorous about claims, having a specialist on your side can make a real difference. The key is to focus on activities that aim to make a genuine advance in science or technology and involve solving uncertainties that aren’t already widely understood.
Get in touch with our expert team today, to find out how we can help you make the most of your innovation.
Want to learn more? Government guidance: Claiming Research and Development (R&D) Tax Relief
Claiming R&D Tax Relief for subcontracted work can be complex, especially with new rules from April 2024. This article explains what qualifies as subcontracted R&D, who can claim under the updated scheme, and what records you need to support your claim. From contracts and invoices to technical reports and emails, having the right documentation is key to staying compliant and avoiding HMRC enquiries.
A detailed summary of the First-tier Tribunal’s decision in Realbuzz Group Ltd v HMRC (May 2025), focusing on the limits of HMRC’s discovery assessment powers in relation to R&D tax relief claims. We touch on key tribunal issues including the “hypothetical officer” test, the importance of adequate disclosure, and the legal protections available to taxpayers. The ruling offers important guidance for companies claiming R&D tax credits and clarifies HMRC’s ability to revisit prior-year claims.
Assists organisations in accessing research and development grant funding across a range of UK and EU schemes and industry sectors.
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