When most people hear “research and development,” they imagine scientists in lab coats. But in reality, R&D tax credits are available to a much wider range of businesses - construction, tech, food production, manufacturing, and even professional services. If your business is creating new products, processes, or services (or making existing ones better), you could qualify.
What are R&D Tax Credits?
R&D tax credits are a government incentive designed to encourage innovation. They let businesses reclaim some of the money they’ve spent on projects that push forward knowledge or improve the way things are done.
This comes in two forms:
• A reduction in your Corporation Tax bill
• Or a cash repayment if you’re loss-making
Either way, it means more money staying in your business.
A Simple Example
Imagine you run a construction company developing a new eco-friendly building material. You spend £100,000 on staff wages, testing, and materials for the project.
• Under the SME R&D scheme, you might be able to claim back up to 25% of that spend.
• That’s £25,000 back in your business—cash you can use to hire, invest, or fund your next idea.
Who Can Claim?
You don’t need to be a tech company or a big multinational. You may qualify if your business has:
• Tried to solve a technical or scientific problem
• Developed or improved products, processes, or services
• Invested in staff, software, or materials to make it happen
Why It Matters
Innovation is risky, but the R&D scheme is there to reward businesses who take those risks. Many companies miss out simply because they don’t think what they’re doing “counts” as R&D.
Takeaway
If your business is making improvements, testing new ideas, or finding better ways of working, you could be entitled to a significant tax saving. R&D tax credits aren’t just for labs—they’re for everyday businesses driving innovation.
Set Yourself up for Success
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Book your 30 minute discovery call today— enjoy a relaxed, no-obligation chat with one of our qualified accounting advisors. We can assess your situation and determine how to best serve and add value to your business.
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