Preparing for Your First R&D Claim

Start Your R&D Claim with Confidence

If your business is innovating by improving processes, building new products, or solving technical challenges, you may be eligible for R&D tax relief. At Lumina, we support you every step of the way, ensuring your first claim is accurate, compliant, and stress-free.

What is R&D Tax Relief?

R&D (Research & Development) tax relief is a government incentive that rewards companies for investing in innovation. Whether you're in manufacturing, tech, engineering, or any sector, if you're solving scientific or technological problems or improving how things are done, there's a chance your work qualifies.

How Does R&D Tax Relief Work?

The value of your R&D tax relief will depend on your company’s size, profitability, and accounting period. For accounting periods starting on or after 1 April 2024, most businesses will claim under the new merged R&D scheme.

• In common with the previous RDEC regime, relief for R&D expenditure is given via a taxable, above-the-line credit at a rate of 20% of qualifying R&D spend.
• The net benefit will depend on the taxable profits of the company and whether the main rate of tax or the small profits rate applies.
• A seven-step calculation applies to discharge tax liabilities before a potential payment of the balance as a cash credit.

Loss-making SMEs may be eligible for the new Enhanced R&D Intensive Support (ERIS) scheme.

This is available to loss-making SMEs with R&D expenditure of at least 30% of total company costs. It provides a higher tax credit rate than the standard merged scheme, with a benefit up to 27% of qualifying spend.

Eligible costs for both schemes include staff wages, subcontractors, labour supplied through agencies, software, data sets, cloud computing costs and consumables directly related to the R&D project. Understanding which expenses qualify and how to apply HMRC’s rules to calculate them accurately can be complex. That’s why our specialist team is here - to ensure your claim is fully compliant, thorough, and captures all allowable costs.

The Process: How We Work with You

Our process is designed to make your first claim efficient and fully compliant:

1. Initial Consultation – We assess eligibility and explore your projects
2. Information Gathering – Our team works with your technical staff and financial records
3. Technical Narrative & Calculations – We draft the report and calculations
4. Review & Sign-Off – You review and approve the claim
5. Submission – We prepare the submission and file with HMRC

For accounting periods beginning on or after 1 April 2023, in some cases HMRC needs to be told in advance that a company intends to claim.

Pre-notification is required within 6 months of your year-end if you’re claiming for the first time.

Why Work with Lumina, Ad Valorem’s Specialist Team?

• Over a decade supporting first-time claimants
• Ex-HMRC and sector specialists who can interact on both technology and tax
• Regulated, award-winning accountancy firm (ACCA)
• Insight-led process that captures all qualifying costs
• Peace of mind in a time of growing HMRC scrutiny
• Contractual enquiry defence conducted by a former HMRC inspector – we don’t file claims we are not prepared to defend.