R&D Tax Credits

A UK government incentive that allows companies to claim a tax deduction or cash payment for qualifying research and development expenditure, reducing the effective cost of innovation.

Many founders building tech products or novel solutions qualify for R&D tax credits without realising it. Claiming them can return thousands of pounds annually and meaningfully extend runway without diluting equity.

A founder who spent £80,000 building a novel AI-powered tool works with a specialist adviser to claim R&D tax credits. She receives a £24,000 cash payment from HMRC, effectively subsidising a third of her development cost for the year.