R&D Tax Credits for UK Tech Startups

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How do UK tech startups claim R&D tax credits?

UK tech startups claim R&D tax credits by identifying projects involving scientific or technological uncertainty, documenting the qualifying expenditure (staff time, contractors, software, cloud computing, consumables), preparing a technical narrative explaining the advance sought and the uncertainty resolved, submitting the CT600L alongside the corporation tax return, and (for first-time claimants) submitting the Advance Notification within 6 months of the period end. Under the merged scheme that took effect April 2024, most companies receive a 20% credit; R&D-intensive SMEs spending more than 30% of total expenditure on R&D receive 27%. Loss-making startups receive the credit as a cash payment from HMRC.