To qualify for R&D tax relief, your company must be:
- Making an appreciable improvement to existing technology. This does not necessarily mean ground breaking, innovative, or novel work. If companies are aiming to make their products or process cheaper, faster, smaller, or better in some way, then this may qualify as R&D.
- Overcoming technological uncertainties or challenges, especially if the solution will not be immediately obvious to a qualified professional. The company may need to go through a “trial and error” process to achieve the required solution.
R&D often occurs within day to day business activities where companies are improving, developing or manufacturing products, services or internal processes which aim to maintain a competitive and commercial advantage.