What actually counts as R&D for a software startup?

It is not just about writing new code. HMRC looks for projects that resolve technical uncertainties. If your team is overcoming performance bottlenecks, scaling architecture in ways that aren't 'off-the-shelf', or integrating legacy systems where no blueprint exists, you are likely eligible. Routine bug fixes won't count, but solving 'how do we make this work' usually does.

How much cash can I actually get back?

For accounting periods starting after April 2024, the merged R&D Expenditure Credit (RDEC) offers a net benefit of roughly 15% on eligible spend. However, loss-making R&D intensive SMEs can still access a higher credit rate of up to 27%. For a founder spending £100k on dev salaries, this could mean a £27k cash injection.

Does HMRC still check these claims manually?

Yes, and they have ramped up compliance. HMRC now requires an 'Additional Information Form' (AIF) for every claim submitted. This means you need a rock-solid technical narrative. We ensure your documentation is technically precise and filed correctly, reducing the risk of a time-consuming enquiry that could stall your funding for months.

Can I claim for contractors or just full-time staff?

You can claim for both, but the rules differ. Typically, you can claim 100% of relevant PAYE staff costs, whereas qualifying payments to external agencies or contractors are usually restricted to 65%. Note that for periods starting after April 2024, most overseas contractor costs are now excluded to encourage UK-based innovation and local hiring.

Will this process distract my lead engineer for weeks?

No. That is the problem with generalist firms. Because we understand technical architecture, we don't need a 10-hour interview to understand your stack. We audit your existing documentation and issue trackers to map the work. We only need a short high-level sync to verify the technical 'why', keeping your engineers on the roadmap.

Unlock growth with innovation tax incentives

Recover development costs to fuel your next build. We handle the technical justification while you stay focused on the product roadmap. No generic accounting jargon, just direct support for technical founders.

Maximise R&D Tax Credits

We help your organisation realise the full potential of innovation technological incentives.

Reduce Corporation Tax

Strategically lower your tax burden while reinvesting in what matters most — growth.

HMRC-Compliant Claims

We specialise in guiding businesses through the SME and RDEC schemes with confidence.

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Technical Founders

Stop leaving capital on the table

HMRC guidelines are dense and your time is better spent on code. Most startups miss eligible activities because they do not know how to translate development hurdles into tax language. We audit your sprints and technical architecture to map real work to claimable categories. We produce robust technical narratives that stand up to inspection without wasting your engineering resources. Your claim is filed accurately and your runway is extended. You get back to shipping features with a cash injection secured by your own innovation. We provide technical precision that standard accountants cannot reach.