Research and Development/Patent Box

Research and Development (R&D) tax relief represents one of the most significant cash flow opportunities available.

No jargon. No pressure. Just expert advice to help your business move forward with confidence. Get in touch today or apply to become a client.

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.

Tell us a little about your business and goals, and we’ll review whether StriveX is the right fit for your next stage of growth.

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
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.
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.
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.
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.

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