Limited company guide
How the merged R&D expenditure credit scheme works, the enhanced support for R&D-intensive SMEs, the notification traps and what HMRC now checks.
Written and reviewed by Waqas Sagar Member of ICAEW, Fellow of ACCA, Fellow of AAT, a double graduate and entrepreneur at heart, helping startups grow and serving thousands of businesses nationwide with an excellent team. Published by LimitedCompany.Accountants, 12 London Road, Morden, London SM4 5BQ. Reviewed 12 September 2026 against 2026/27 UK rates and current Companies House and HMRC guidance.
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Xero Gold PartnerCertified advisor
QuickBooks PartnerCertified ProAdvisor100+ yearsCombined team experienceFully insuredUp to £2m indemnityFor accounting periods beginning on or after 1 April 2024, the old SME and RDEC schemes were merged into a single expenditure credit, with separate enhanced support for loss-making R&D-intensive SMEs.
What changed
What qualifies
The administrative traps
Surviving a compliance check
For accounting periods beginning on or after 1 April 2024, the old SME and RDEC schemes were merged into a single expenditure credit, with separate enhanced support for loss-making R&D-intensive SMEs.
The practical effect for most companies is a different rate, a different calculation and, importantly, a much higher evidential bar than claims made three or four years ago.
The work must seek an advance in science or technology through the resolution of scientific or technological uncertainty that a competent professional in the field could not readily resolve. Commercial novelty is not enough; nor is difficulty caused only by lack of in-house skill.
Qualifying costs typically include staff, externally provided workers, subcontractors subject to restrictions, software, data and cloud computing costs, and consumables. Overseas expenditure is now restricted, with narrow exceptions.
New claimants, and those who have not claimed in the previous three years, must submit a claim notification within six months of the end of the accounting period. Miss it and the claim is simply not available, however good the science.
Every claim also needs an additional information form submitted before the tax return, with project descriptions, cost breakdowns, the named competent professional and the agent involved. Claims filed without it are rejected.
HMRC's compliance activity in this area has increased sharply. What survives a check is contemporaneous evidence: technical notes written at the time, ticket and commit history, and a competent professional who can explain the uncertainty in their own words.
What does not survive is a narrative written after the fact by someone who was not in the room. If a provider offers to write your claim without speaking to your engineers, that is the wrong provider.
Local help
We work with company directors across London and Surrey from our office at 12 London Road, Morden, London SM4 5BQ. Pick your area, or send the form below and we will call you back.
Frequently asked
Yes, that is often when it is most valuable, as relief can produce a cash credit. R&D-intensive loss-making SMEs may access enhanced support.
Generally two years from the end of the accounting period, subject to the claim notification requirement for newer claimants, which can cut that short in practice.
Using them, no. Advancing them, novel architecture, training methods, or solving genuine performance uncertainty at scale, can qualify.
Subsidised expenditure is treated differently and can reduce the benefit. Model the grant and the relief together before accepting funding.
Keep bank statements, sales and platform reports, purchase invoices, payroll records, VAT workings, finance agreements and Companies House correspondence. We confirm the exact list at onboarding and identify gaps before a filing deadline becomes urgent.
The fee depends on transaction volume, record quality, VAT and payroll requirements, historic catch-up and the level of reporting needed. We agree a fixed scope and price before technical work starts, with published packages available on our fees page.
Yes. We request professional clearance, collect the prior records and authorities, check the next Companies House and HMRC deadlines, and give you one clear handover list. The process is normally completed remotely.
Yes. We work through secure cloud records, scheduled reviews and digital approvals, while keeping a named team available by phone, video call and email. Clients can also visit our Morden office by appointment.
We regularly work with Xero, QuickBooks, FreeAgent, Sage and connected sales or expense apps. The right setup depends on transaction volume, integrations and the reports you need, not simply the software brand.
The relevant calendar may include annual accounts, Corporation Tax payment and return dates, confirmation statements, VAT returns, payroll submissions and Self Assessment. We map the dates from your company year end and registrations.
Included approach
Check the current rules
Deadlines, thresholds and filing rules change. GOV.UK and Companies House publish the current statutory position; advice should then be applied to your company’s circumstances.
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Pick a time that suits you and a qualified accountant will call you about your company, deadlines and fees.
Appointments run monday to friday, 9:00am to 5:30pm. Your confirmation is emailed straight away.
