R&D is a highly technical area … We were looking for a firm that clearly understood the technical language of R&D and were committed to executing the work required in an equally technical and detailed way. Working with Catalyst was a pleasure.
This rigorous and thorough approach was exactly what we were looking for and our experience reinforced that the Catalyst team are some of the best in the business.
R&D is a highly technical area … We were looking for a firm that clearly understood the technical language of R&D and were committed to executing the work required in an equally technical and detailed way. Working with Catalyst was a pleasure.
This rigorous and thorough approach was exactly what we were looking for and our experience reinforced that the Catalyst team are some of the best in the business.
of Experience
R&D Tax Claims processed globally
Compliance
The merged R&D scheme rewards companies investing in genuine innovation, with relief of up to 27% of qualifying expenditure. HMRC compliance activity is at record levels, which has raised the standard every claim now needs to meet.
At Catalyst Solutions, we build claims that are accurate, traceable and defensible years after submission. Our team of Chartered Accountants, tax specialists, engineers and scientists has been advising innovative businesses for over 15 years.
CONTACT USThe UK R&D tax regime changed significantly in April 2024. For accounting periods beginning on or after 1 April 2024, most companies now claim under the merged scheme. Earlier legacy schemes still apply to historical claims and to some loss-making R&D intensive SMEs.
The merged scheme applies to all companies (SMEs and large) for accounting periods beginning on or after 1 April 2024. It replaces the previous SME and RDEC schemes and provides a credit of approximately 16.2% of qualifying R&D expenditure.
ERIS is a separate enhanced scheme for loss-making SMEs that meet specific R&D intensity conditions. For accounting periods beginning on or after 1 April 2024, qualifying companies need R&D expenditure equal to at least 30% of total expenditure. ERIS offers a benefit of up to 27% of qualifying R&D expenditure back in cash.
For claims relating to accounting periods before 1 April 2024, the previous SME R&D Relief, RDEC, and R&D Intensive Scheme rules still apply. We can advise on retrospective claims under these schemes where relevant.
In order for a project to qualify for the incentive, HMRC guidelines explain that “the project must seek to resolve specific uncertainties to achieve an advance in a qualifying field of science or technology”.
Some of the criteria that need to be met include, that the goals of a project must:
Qualifying fields of science and technology vary from Engineering and Construction, medical research, pharma, defence, agriculture, computer science, AI or sports science (not an exhaustive list).
Qualifying costs can vary depending on the scheme and financial period. The primary costs that typically make up the majority of a claim for R&D tax credits include staffing costs for employees engaged in qualifying R&D activities. Additionally, externally provided workers, some subcontracted R&D costs and consumables can also be claimed.
Recently, the legislation has expanded to include certain software, data licensing and cloud computing costs.
Our Tax specialists will work closely with you to extract all relevant expense information and ensure that you are maximising your R&D returns in a fully compliant way.
All claims are made retrospectively on R&D that has already taken place. A company has two years from the end of a financial period to claim R&D Tax (this is subject to the requirement of submitting a pre-claim notification within the notification window.
The HMRC places heavy emphasis on the use of competent professionals (“CP”) in proving the legitimacy of an R&D project. The guidelines discuss that a CP is someone who can “judge if a scientific or technological advance is needed to solve a particular problem”. The CP is an integral part of an R&D Tax claim and the technical experts at Catalyst Solutions will work closely with your CP to clearly define the R&D being undertaken.
Additional Information Form
Before a claim can be submitted, an Additional Information Form (“AIF”) must be submitted to HMRC. No claim will be considered without this AIF having first been submitted. Catalyst Solutions will prepare the AIF based on the technical narrative that we prepare and the financial information that we gather on all qualifying projects.
Claim Notification
If you are claiming for the first time or have not made a claim for more than three years, then you are required to submit a claim notification to the HMRC within six months of the year end for the financial year you wish to make a claim.
Technical Narrative
Qualifying R&D needs to be described in detail and specific points addressed for the HMRC to be able understand why you feel you qualify for the incentive. There are rules on how many projects need to be described and our technical experts will guide you through the process.
Financial Calculation
It is important to provide the HMRC with a detailed breakdown of all qualifying expenditure relating to the R&D being claimed. The expenditure must be broken down into various categories, calculated at specific rates and various caps applied. Our team of ACAs and accounting professionals will work closely with you to extract all of the relevant information, calculate the correct figures and to present it correctly for the HMRC.
Historically, companies could claim the R&D relief even on some R&D work that occurs abroad. However, the changes in the various R&D schemes have added complexity around claims for foreign subcontracting. It’s advisable to consult with Catalyst Solutions to navigate these nuances and maximize your R&D relief.
Funded (subcontracted or subsidized) R&D has always been a complex topic in R&D Tax.
Under the legacy SME scheme (for periods of account starting before 01 April 2024), HMRC generally disallowed R&D done under contract, even if R&D was not specified (in some circumstances it could be claimed under RDEC).
The new schemes (for accounting periods starting on or after 01 April 2024) simplify this by generally allowing the company deciding to undertake the R&D to claim relief.
Our Tax Specialists will work with you to understand how these rules impact your claim.
HMRC can open a compliance check on any R&D tax claim after it has been submitted. If your claim is selected, HMRC will write to you (or your agent) requesting further information. This typically includes detailed questions about the technical nature of the R&D, the people involved, the costs claimed, and the supporting documentation.
You will need to respond within the timeframe HMRC sets. Enquiries can involve multiple rounds of correspondence, meetings, and written submissions, and commonly take several months to resolve. The outcome can range from HMRC accepting the claim as submitted, to adjusting the claim value, to rejecting it entirely with repayment demands and interest.
The quality of the original claim, particularly the technical narrative and the traceability of the costs, largely determines how straightforward the enquiry process is.
For more detail on the enquiry process, read our guide to what happens during an HMRC R&D compliance check.
We work with innovative businesses across every sector, from Fortune 500 pharmaceutical companies to AI startups. Our engineers, scientists, Chartered Accountants and tax specialists work together on every engagement, ensuring claims are accurate, defensible, and built on real technical understanding.
Qualified engineers and scientists work directly with your R&D teams. More qualifying activity is captured, and every description reflects the work as it actually happened.
We design for HMRC scrutiny from the outset. Every document is written with one question in mind: could this be explained clearly to an inspector years down the line?
We manage R&D tax claims across the UK, South Africa, Australia and Germany. As part of the VAT IT Group, we sit within a global tax reclaim organisation serving more than 13,000 companies across 107 countries.
We engage with client teams throughout the year, capturing qualifying activity as it happens and tracking regulatory changes before they affect our clients' position.
Our engineers and scientists engage directly with your technical teams to identify every activity that qualifies for R&D tax relief.
We draft the technical narrative HMRC requires under the merged scheme, describing the R&D accurately and in terms an HMRC inspector will recognise.
Our Chartered Accountants and tax specialists compile the qualifying expenditure and prepare the Additional Information Form for HMRC. Every pound is traced, documented, and structured to support an enquiry, ensuring your claim is maximised.
You receive a full claim package covering the technical narrative, qualifying expenditure, and all supporting documentation HMRC may request. The report is built to the standard an HMRC inspector would expect if the claim is later reviewed.
We stay engaged between submissions, tracking regulatory changes and maintaining documentation for the life of each claim. If HMRC opens an enquiry into a claim we have prepared, our team manages the response directly.
Up to 48.5% of qualifying expenditure can be claimed as a tax offset via the R&D Tax Incentive which is governed by the Income Tax Assessment Act.
In Germany, up to 35% of qualifying expenditure can be claimed via the Research Allowance Act (“FZulG”).
A 150% supercharged tax deduction on qualifying expenditure is available via the R&D Tax Incentive which is contained in the Income Tax Act.
We assist companies across the globe with R&D Tax Incentive related claims and obtain R&D Tax Incentives for some of the world’s largest listed companies.
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