R&D Tax Credits & Patent Box

R&D Tax Relief for Growing Businesses

For UK companies turning over £1m to £15m, Research and Development (R&D) tax relief represents one of the most significant cash flow opportunities available – often returning £25,000 to £150,000+ annually in reduced tax liabilities or cash credits.

Whether you’re developing new software architectures, engineering advanced manufacturing processes, or creating patented products, if your work resolves technological uncertainty, you likely qualify for substantial government incentives.

Key Opportunity: The 2024 merged R&D scheme now simplifies claiming for all businesses, while introducing enhanced 14.5% credit rates for R&D-intensive companies (those spending 30%+ of total costs on research). For scaling manufacturers and tech businesses, this often means significantly improved returns compared to the previous system.

Qualifying Activities for £1m+ Technology and Manufacturing Companies

We specialise in identifying qualifying expenditure often missed by generalist accountants. Common qualifying projects include:

Software & Technology

Developing proprietary algorithms, AI/ML models, or data processing architectures
Creating new APIs, integrations, or scalable infrastructure (not routine coding)
Resolving platform compatibility or security challenges without existing solutions
Building bespoke CRM, ERP, or workflow automation systems

Manufacturing & Engineering

Prototyping new product designs or materials exceeding industry standards
Developing automated production lines or novel quality assurance systems
Resolving engineering constraints around sustainability, efficiency, or precision
Creating bespoke tooling, jigs, or manufacturing methodologies

The Critical Test: Your project must resolve technological uncertainty – meaning the solution wasn’t readily available or obvious to competent professionals in your field. Routine product development using established methods does not qualify.

Patent Box: The Next Step for R&D-Intensive Businesses

While R&D tax relief reduces the cost of innovation, Patent Box reduces the tax on its commercial success. Once your R&D generates patented products or processes, you may pay just 10% corporation tax on related profits—half the standard rate.

Strategic Integration: We advise scaling businesses to align R&D claiming with IP strategy. Companies with £1m+ turnover often benefit from coordinating their R&D tax relief claims with Patent Box elections, ensuring the innovation funding cycle (research → patent → commercialise → reinvest) is fully tax-optimised.

Eligible businesses typically include:

Technology companies with software patents or technical process patents
Manufacturers with product patents or method-of-manufacture protections
Engineering firms with process innovations protected by UK or European patents

Our Process: Fast, Specialist, Aligned with Growth

Unlike generalist firms who treat R&D as a year-end afterthought, we understand that for scaling businesses, timing is cash flow.

Quick Turnaround
Where we handle your year-end accounts and corporation tax return, we guarantee R&D claim submission with a quick turnaround. This accelerates HMRC processing and gets cash back into your business faster – critical for funding growth or bridging to investment rounds.

Specialist Technical Review

All claims are reviewed by our R&D tax specialists (not junior staff) to ensure they meet HMRC’s evolving criteria. We provide:

Technical narrative preparation justifying the scientific/technological advance
Cost segregation analysis (staff costs, consumables, subcontractors, software)
Compliance with the merged R&D scheme rules (effective April 2024 onwards)
Advance Assurance applications for companies seeking guaranteed claim acceptance

Frequently Asked Questions

What qualifies as R&D for tax relief purposes?

Your project must seek to achieve an advance in science or technology by resolving technological uncertainty. This means the solution wasn’t readily available or obvious to competent professionals in your field. For scaling tech companies, this includes developing proprietary algorithms or scalable infrastructure; for manufacturers, novel production methods or materials. Routine product development using established methods does not qualify.

What are the current R&D tax credit rates under the merged scheme?

The 2024 merged R&D scheme offers a 20% above-the-line credit for most companies. However, if you’re an R&D-intensive company—spending 30% or more of your total costs on qualifying research—you qualify for an enhanced 14.5% credit rate. For a £1m turnover business with £300k+ R&D spend, this can generate significant cash repayments or tax reductions.

What is Patent Box and does our business qualify?

Patent Box allows companies to pay just 10% corporation tax on profits attributable to patented innovations. To qualify, you must hold a qualifying UK or European patent (pending applications don’t qualify) and generate profits from exploiting that patented technology. It’s the logical next step after R&D—while R&D relief reduces the cost of innovation, Patent Box reduces the tax on its commercial success.

Can we claim R&D tax credits if we have received grant funding?

Yes, but the interaction requires careful planning. Grant-funded expenditure typically falls under “subsidised expenditure” rules, meaning you may need to claim under RDEC rules for those specific costs rather than the merged scheme. We assess your funding structure to maximise relief across both grant-funded and non-grant-funded expenditure.

Claim Your Innovation Investment Back

R&D tax relief and Patent Box aren’t loopholes—they’re government incentives designed specifically to keep innovative businesses competitive. For scaling tech and manufacturing companies, they provide essential funding for continued development.

Ready to review your position? Whether you’ve never claimed before or want to ensure you’re maximising relief under the new merged scheme, we can assess your projects and forecast your return.

Call us on 01628 965760 or email info@strivex.co.uk.

Maximise innovation investment for scaling tech and manufacturing businesses.