Tax & Innovation

Tax & Innovation

7 Nov 2025

7 Nov 2025

4 min

4 min

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R&D Tax Relief Is Changing. Here’s What UK Businesses Need to Know

Big updates are coming to the UK’s R&D tax relief scheme. If you’re innovating, developing software, or building new products, this could affect your claim.

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CGI Accountants

Head of Developments

R&D TAX RELIEF
SMALL BUSINESS SUPPORT
UK TAX REFORM
INNOVATION FUNDING
R&D TAX RELIEF
SMALL BUSINESS SUPPORT
UK TAX REFORM
INNOVATION FUNDING
R&D TAX RELIEF
SMALL BUSINESS SUPPORT
UK TAX REFORM
INNOVATION FUNDING

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Innovation Should Be Rewarded — But the Rules Are Changing

If you’re developing new products, improving processes, or building software, you’ve probably come across R&D tax relief. It’s one of the most generous incentives for UK businesses — but the rules are tightening in 2026.

The aim is to reduce abuse and sharpen the criteria. Fair enough.
But if you’re not prepared, you could lose money you’re entitled to.

What’s Actually Changing?

Here’s the simple version of the new rules:

  • All claims must be digital through HMRC’s new online portal.

  • Advance notification is required for first-time claimants.

  • Overseas subcontracted R&D won’t qualify (with limited exceptions).

  • Software and cloud costs face tighter scrutiny.

  • Changes apply to accounting periods starting on or after April 2026.

If your financial year crosses that date, the adjustments affect you earlier than you think.

Will My Claim Still Qualify?

If you’re genuinely solving technical problems — whether that’s developing new software, refining manufacturing processes, or improving a system — you can still claim.

But you’ll need proper evidence:

  • Clear documentation of what was developed and why it qualifies

  • Breakdowns of staff time, software costs, and subcontracted work

  • Cleaner records showing who worked on each element

This is where most businesses fall short.
And it’s exactly where we step in.

How CGI Helps You Claim with Confidence

We’ve supported businesses across Yorkshire and beyond with R&D claims for years. No templates, no guesswork, no inflated numbers. Just solid, compliant claims HMRC actually understands.

We help you:

  • Confirm which activities genuinely qualify

  • Work with your technical team to produce a strong narrative

  • Gather payroll data, time logs, and supporting evidence

  • Submit everything correctly through HMRC’s new portal

  • Complete the advance notification for first-time claimants

Straightforward. Compliant. Stress-free.

Local Example: A Yorkshire Business Saved £36k

A growing ecommerce firm in Batley had never claimed R&D before.
After reviewing their activity, we identified qualifying work worth nearly £36,000 for the 2024–2025 period. They’re now fully prepared for the 2026 rule changes — no pressure, no audit risk, no last-minute headaches.

Conclusion

R&D tax relief can be a major boost to your cash flow — but with the new rules coming in, preparation is everything.
We make sure your claim is compliant, well-documented, and maximises what you’re entitled to.

Want a review of your last claim or help preparing for 2026?
Get in touch with CGI. We’re ready when you are.

Looking for more? Dive into our other articles, updates, and strategies

Batley, West Yorkshire, UK

@ 2025 CGI Accountants LTD. All rights reverved

CGI Accountants Ltd is a registered accounting firm based in England and Wales (Company No. 12190551).
Registered office: Branch House, 31-33 Branch Road, Batley, WF17 5SB.

We provide accounting, tax, payroll, and advisory services to businesses and individuals.
Our work is carried out in accordance with the professional and ethical standards of our regulatory body.
All advice and information are intended for general guidance only and should not be relied on as financial, legal, or investment advice without consultation.

Client data is handled securely and in compliance with the UK GDPR and data protection laws. We do not sell or share personal information with third parties.

For questions about our services or policies, please contact us at info@cgi-accountants.co.uk.

Batley, West Yorkshire, UK

@ 2025 CGI Accountants LTD. All rights reverved

CGI Accountants Ltd is a registered accounting firm based in England and Wales (Company No. 12190551).
Registered office: Branch House, 31-33 Branch Road, Batley, WF17 5SB.

We provide accounting, tax, payroll, and advisory services to businesses and individuals.
Our work is carried out in accordance with the professional and ethical standards of our regulatory body.
All advice and information are intended for general guidance only and should not be relied on as financial, legal, or investment advice without consultation.

Client data is handled securely and in compliance with the UK GDPR and data protection laws. We do not sell or share personal information with third parties.

For questions about our services or policies, please contact us at info@cgi-accountants.co.uk.

Batley, West Yorkshire, UK

@ 2025 CGI Accountants LTD. All rights reverved

CGI Accountants Ltd is a registered accounting firm based in England and Wales (Company No. 12190551).
Registered office: Branch House, 31-33 Branch Road, Batley, WF17 5SB.

We provide accounting, tax, payroll, and advisory services to businesses and individuals.
Our work is carried out in accordance with the professional and ethical standards of our regulatory body.
All advice and information are intended for general guidance only and should not be relied on as financial, legal, or investment advice without consultation.

Client data is handled securely and in compliance with the UK GDPR and data protection laws. We do not sell or share personal information with third parties.

For questions about our services or policies, please contact us at info@cgi-accountants.co.uk.