Our specialist R&D tax team can help you identify whether you’re eligible and support you with submitting a claim.
Research and Development Tax Relief
Our specialist R&D tax team can help you identify whether you’re eligible and support you with submitting a claim.
No matter the size or stage of your business, our team of dedicated and experienced R&D tax credit experts is here to assist you in identifying the areas where you can benefit from the R&D tax incentive scheme. We will provide you with expert advice on how to make your claims and guide you through the filing process with HMRC.
The R&D tax relief scheme was created to fuel innovation in the UK and provide compensation to limited companies engaged in research and development. Currently, the scheme is categorised into two brackets:
- the Small Medium Enterprise (SME) scheme
- one for large companies, the Research and Development Expenditure Credit (RDEC) scheme
For accounting periods starting on or after 1 April 2024, the schemes will be merged into an amended RDEC scheme, though are some additional benefits for R&D intensive companies.
Broadly, to qualify for an R&D tax credits claim, a company’s project must seek to achieve an advancement in science or technology. The project should address an area of scientific or technological uncertainty and be innovative.
A company can then claim either enhanced corporation tax deductions against its taxable profits or a tax credit, for the expenditure that qualifies.
- Aids cashflow
- Allows for further investment into your business
- Allows for investment in your staff
- Opens opportunities for other business decisions otherwise out of reach
We successfully help businesses claim for R&D tax relief that are:
- Investing in projects, products or processes that result in improvements
developing a new product/service or enhancing existing products or processes - Investing in a product or service to make it more efficient, cheaper, or more sustainable
- Undertaking activities that are central to the business or making an investment in back-office operations
We will assist you in preparing a comprehensive technical and financial analysis of the claim, in full compliance with HMRC’s latest disclosure requirements.
Our team is dedicated to providing you with expert tax planning advice to optimise the impact of your claim. Once your claim is filed, we will personally oversee its processing by HMRC, ensuring that your refund is promptly delivered to you.
Should HMRC decide to review your claim, we will handle all elements of the enquiry process on your behalf, guiding you every step of the way until a conclusion is reached.
We have a wealth of experience of making R&D tax relief claims in a wide range of sectors, and can make the process as quick and efficient as possible for you. We take time to understand your business, and can quickly identify projects with potential R&D tax relief claims, and manage the claim process on your behalf.
If you have a problem and use some element of science or technology to try to fix it, then you might have the potential for a claim.
Depending on your company's accounting period, you must make a claim within two years of incurring the eligible expenditure.
Below are examples of costs that may qualify for R&D relief:
Staffing costs and agency workers for time spent directly and indirectly on R&D projects.
Consumable items including power and water costs, software used for R&D activities.
Payments to sub-contractors for certain qualifying activities.
Prototype costs for developing new products.
I am grateful to the experienced team at Azets for supporting Incredible Husk through the R&D tax credit process and general business advisory services. The subject matter expert team of technologists and tax specialists lead by Stuart Bentley delivered a thorough, professional, and speedy service, with clear communication throughout. As a first-time claimant, the complexities appeared daunting, but the knowledgeable team supported us through both the technology and financials, and we are delighted with the high-quality result. I would undoubtedly recommend Azets to other businesses looking for outstanding R&D tax credit claim service. The tax benefit we received has been invaluable and has helped us continue innovative work in our field.
Keith Ridgeway, CEO
Incredible Husk International Group
Innovations Relief
Innovation plays a key role in driving business growth, and the UK government offers a range of tax relief opportunities to support companies involved in innovative projects. These reliefs can provide significant financial benefits, helping businesses to invest more in research and development, supporting wider UK growth.
Some of the most notable reliefs include Research & Development (R&D) tax relief and Patent Box, but there are many others available depending on the nature of your business activities. However, recent changes to legislation and, for some of the reliefs, stricter claim preparation and submission processes have made accessing these benefits more complex.
At Azets, we understand the evolving landscape of innovation reliefs and we have expert advisors to help you understand these tax reliefs and navigate the claims process with confidence.
Explore the key reliefs available:
Our specialist team can help you identify whether your company qualifies for the valuable Patent Box tax relief.
What is Patent Box and who can benefit?
Available to all companies regardless of industry, Patent Box provides corporate tax relief for companies that choose to retain, protect, and commercialise their activities in the UK. It provides an effective rate of corporation tax of 10% for relevant profits derived from patents.
To qualify, the company must satisfy the following criteria:
- Hold a qualifying Intellectual Property (“IP”) right or an exclusive licence to such rights. These are typically granted patents or patent-equivalent rights.
- Meet the development condition, by virtue of its own development of the patented technology, or the development activities of another group company.
- Where the company is in a group, meet the active ownership condition by demonstrating active management of the exploitation of the IP right or exclusive licence.
How is the benefit calculated?
The first step in the Patent Box calculation is to establish how a company’s IP rights map to its income in one of the following categories:
- Product and bespoke spare parts sales
- Royalties, milestones and licence fees
- Patent sales
- Damages for infringement and other compensation payments
- Services income or income from patented processes
How we can support your claim
Our specialist corporate tax advisors will work with you to identify and review your existing IP and the benefits of making a UK Patent Box election and we can help you decide on whether or not the time is right to elect into the Patent Box regime. We can also help advise on the company’s IP structure and assist you in compiling a schedule of products and services that are associated with the qualifying patents so that the company’s claim can be maximised in line with current legislative provisions.
Tax incentives for the UK’s creative industry.
The UK’s creative sector is a powerhouse of innovation, and Creative Sector Tax Reliefs (CSTR) are designed to support its growth. These reliefs allow creative businesses to claim back on core production expenses, empowering them to reinvest in future projects. However, the claims process can be complicated to navigate and there are also some businesses who aren’t aware that they’re eligible. At Azets, we help creative companies unlock the full benefits of these tax reliefs, simplifying the claims process and ensuring they meet all eligibility requirements.
What are Creative Sector Tax Reliefs?
They encompass a wide range of government-backed tax incentives aimed at supporting various areas within the creative industry. However, a new form of tax incentive—the Audio-Visual Expenditure Credit (AVEC)—has been introduced to replace some of the previous reliefs. AVEC will consolidate certain CSTR types, including:
- AVEC for Film
- AVEC for High-end Television
- AVEC for Children's Television
- AVEC for Animation
As of January 2025, this new structure replaced the former Film Tax Relief (FTR), High-end Television Tax Relief (HTR), Children's Television Tax Relief (CTR), and Animation Tax Relief (ATR). AVEC will operate as an expenditure credit, offering increased transparency and potentially higher rates for qualifying production costs.
Other CSTRs, which are not impacted by AVEC, continue to support creative sectors, such as:
- Theatre Tax Relief (TTR)
- Orchestra Tax Relief (OTR)
- Museums and Galleries Exhibition Tax Relief (MGETR)
- Video Games Tax Relief (VGTR)
Each relief is designed to make producing culturally valuable content in the UK more affordable. Working with a team well-versed in CSTR and AVEC can help companies ensure they meet sector-specific qualifying criteria, maximising their tax savings.
Benefits of Creative Sector Tax Reliefs
These reliefs provide financial support that can transform creative companies, enabling them to:
- Increase cash flow: Reduced tax obligations create more room for investment.
- Expand production capacity: Added financial flexibility allows for more ambitious projects.
- Attract top-tier talent: Tax savings make it easier to recruit and retain skilled creative professionals.
Simplifying the claim process
The eligibility requirements and application processes for Creative Sector Tax Reliefs and AVEC can vary significantly across relief types. At Azets, our specialist team guides you through this complexity, offering a tailored approach from initial assessment to application and beyond. We help creative businesses navigate the process to unlock maximum benefits for each relevant relief.
Whatever your size or industry, our local teams are ready with practical, personal advice.
Tax planning is a phrase to fill some with organisational dread, but at Azets we plan with efficiency and shine a light on existing and changing ways to be as tax efficient as possible. Contact us to put a plan in place for the now and make it sustainable for the future.
I’ve worked in the field for over 13 years, and I thoroughly believe that our tax, technology and investigation specialists working together deliver the best result in terms of service, quality and risk management for our clients.
Gemma Monaghan, UK Head of R&D Tax