If you're building something new,
HMRC wants to help pay for it.
R&D tax credits are one of the most valuable and underused reliefs available to UK businesses. If your company is solving technical problems or developing new processes, products, or services, you could be sitting on a significant tax saving — or even a cash repayment. Runway helps you identify, prepare, and submit robust R&D claims that stand up to HMRC scrutiny.
R&D tax credits for UK businesses
The UK's R&D tax relief scheme is designed to reward companies that invest in innovation. It allows you to claim an enhanced deduction against your taxable profits — or, in some cases, receive a cash credit — for qualifying expenditure on research and development activities.
Many businesses don't realise they qualify. You don't need to be working in a lab or filing patents. If your team is overcoming technical uncertainty — whether that's developing software, engineering new products, or improving existing processes — there's a good chance your work falls within the scope of an R&D claim.
What qualifies as R&D?
R&D for tax purposes is broader than most people expect. It doesn't have to be groundbreaking science — it just needs to involve seeking an advance in science or technology by resolving technical uncertainty. Here are some common examples of qualifying activity.
Developing new software, platforms, or technical architecture
Building or improving products with novel technical features
Creating new manufacturing or production processes
Integrating systems in technically complex or non-standard ways
Developing algorithms, data models, or AI-driven tools
Solving engineering or technical problems with no obvious existing solution
Getting R&D claims right
HMRC has significantly increased its scrutiny of R&D claims in recent years. Poorly prepared or overstated claims are being challenged more often — and the consequences of getting it wrong can be costly. That's why it matters who prepares your claim.
Runway builds every R&D claim from the ground up, working closely with your technical team to understand exactly what was done, why it was necessary, and how it meets HMRC's definition of qualifying activity. The result is a robust, well-documented claim that maximises your relief while standing up to scrutiny.
“Runway's ‘can do’ rather than ‘can't do’ approach is so refreshingly different. They feel genuinely invested in our business and its success.”
Astaris
IT Company
Frequently asked questions
It depends on the scale of your qualifying expenditure and your tax position. Under the merged scheme, qualifying costs generate an enhanced deduction against your profits — reducing your corporation tax bill. For certain R&D-intensive SMEs, a higher rate may apply. Runway will give you a realistic estimate before committing to a claim.
From April 2024, the previous SME and RDEC schemes were merged into a single scheme for most companies. The merged scheme applies an above-the-line credit of 20% on qualifying expenditure. Certain R&D-intensive SMEs may qualify for a higher rate under the Enhanced R&D Intensive Support scheme. Runway will identify which applies to your business.
You can amend a corporation tax return to include an R&D claim up to two years after the end of the relevant accounting period. If you've been carrying out qualifying activity in previous years without claiming, Runway can review whether retrospective claims are available.
No minimum threshold exists. However, the administrative cost of preparing a claim means smaller amounts of qualifying expenditure need to be weighed against the effort involved. Runway will give you an honest assessment of whether a claim is worthwhile.
R&D compliance checks have increased significantly. A well-documented, properly structured claim reduces the risk of challenge — and means you're in a strong position if HMRC does ask questions. Runway builds claims designed to withstand scrutiny and manages any HMRC correspondence on your behalf.
Ready to take the
next step?
Book a free 30-minute call with a Runway co-founder. No pitch, just practical advice.