HMRC have introduced new practical enhancements to their Research and Development (R&D) tax relief tool to help businesses access the tax relief they deserve, whilst also reducing the number of fraud or ‘in error’ claims which simply don’t qualify for relief. Alongside a new expert advisory panel, it seems R&D tax relief is becoming more of a priority for HMRC which is good news for businesses. Unsure if the changes will affect your business? Read on to learn more about R&D tax relief and how it could help your business today.
What Is R&D Tax Relief?
Before we look at what’s changed recently, let’s first break down what R&D tax relief means and whether it applies to your business.
R&D tax relief essentially supports businesses in the science and technology fields for what HMRC calls “innovative projects”. Essentially innovative projects, in this context, are anything that aims to advance the field of science and technology.
- Science is the study of the physical and material universe’s nature and behaviour (including mathematical advances as of April 2023)
- Technology is the practical application of scientific principles
In order to qualify, advancements in these fields must have physical consequences – e.g. the development of a new process, material, or device – or must increase the overall knowledge of the field(s), whether by improving existing understanding or developing a new understanding.
To qualify, your project must also advance the overall field objectively, not just your business. It might sound cliché, but if it isn’t for the greater good of the wider field, then it isn’t a project that’s eligible for R&D tax relief.
So, What’s The Update?
Below we’ll look at the new measures announced by HMRC on the 15th October 2025.
Expert Advisory Panel
A new expert advisory panel has been set up to provide industry insight on R&D tax relief, with six industry specialists with various experience in different areas of science and technology:
- Dr. Zahra Jawad – Chief Executive Officer and founder of Creasallis
- Dr. Gareth Jenkins – Vice President of Science & Technology at Quotient Sciences
- Melissa Strange – Chief Financial Officer at EnteroBiotix
- Oliver Stevens – Head of AI and Machine Learning at Becoming
- Dr. Nektaria Efthymiou – Director of Network Platform and Security Research at BT Group
- Prof. Richard Scaife – Until recently, Regional Development Director at the University of Sheffield Advanced Manufacturing Research Centre (AMRC).
The idea behind the advisory panel is to hear from real-world experts with the experience and understanding of what true R&D is for science and technology. With each individual representing a unique sector within the fields, HMRC and the government are hoping to get a more detailed understanding of individual business’ and their confusion around which projects do and don’t qualify for tax relief. With the panels’ advice, future work around R&D tax relief should be clearer for all and much more applicable to businesses operating in this space.
New Guidance Tool
Perhaps the most useful thing announced by HMRC is their new guidance tool which is designed to help business owners determine if their latest project, product, or service counts for R&D tax relief. Considering previous guidance has been uncertain at best (and completely baffling at its worst), this clear, easy to use tool for business owners helps you understand what qualifies and what doesn’t, before wasting time on an R&D tax relief application.
This is a welcome step forward for businesses who may have been missing out on much deserved tax relief because of uncertainty around whether or not their project truly qualifies, too.
In short, the tool clears up some of the confusion that still persists around R&D tax relief.
What’s The Point Of The Updates To R&D Tax Relief?
Both the guidance tool and the newly announced expert panel are designed to make R&D tax relief a clearer thing for businesses. With expert sectoral guidance from leading professionals, a new tool for business owners and a commitment from HMRC to make sure that the right businesses receive the right support for their innovation, only positive things can come from this.
Your business’ next actions:
- consider if you might qualify for R&D tax relief
- check using HMRC’s free, easy to use R&D tax relief checker
- sign up to our newsletter for the latest news and views in the world of SME straight to your inbox so you don’t miss out on future updates to the way R&D tax relief works in the UK
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