Here is the reality for UK accounting practices right now: R&D tax credits remain one of the most valuable reliefs available to innovative businesses — but preparing a compliant, well-evidenced claim in 2025 and 2026 demands considerably more from your team than it did even two years ago.
New scheme rules. Mandatory documentation requirements. A significant uptick in HMRC compliance activity. And most recently, a brand-new Targeted Advance Assurance pilot launched by HMRC in May 2026 that changes how first-time claimants can engage with the process.
For practices managing multiple R&D clients, the cumulative operational pressure is real — and it is not easing. This BLOG post sets out exactly where the demands are coming from and what forward-thinking firms are doing about it.
The Shift Towards Greater R&D Claim Compliance
One of the most significant changes affecting UK practices is HMRC’s sharper focus on claim quality and accuracy — and it has translated directly into more work at the practice level.
Recent reforms have introduced mandatory Additional Information Forms (AIFs), enhanced technical disclosures, and stricter claim validation processes. These measures are designed to improve the integrity of the R&D tax relief scheme — and they are working. According to HMRC’s September 2025 statistics release, the total number of R&D claims fell by 26% in the 2023–24 tax year, reflecting the impact of tighter compliance requirements on claim volumes.
But here is the nuance: fewer claims do not mean less work. For the claims that remain, the preparation process has become significantly more involved.
Accounting teams can no longer rely solely on financial records. Every R&D tax credit claim now requires detailed project narratives, technical explanations of the scientific or technological uncertainty being addressed, staff activity records, and supporting cost calculations — all submitted via the mandatory AIF before HMRC will process the claim.
This has fundamentally changed the nature of R&D work inside accounting practices.
What the Merged Scheme Changed — And Why It Matters to Your Workload
For accounting periods starting on or after 1 April 2024, the former SME and RDEC schemes were replaced by a single Merged Scheme. On paper, consolidating two schemes into one sounds like simplification. In practice, it has introduced new complexity that affects how claims are prepared on every engagement.
Three areas in particular require careful attention:
Subcontracting rules have been rewritten.
Under the Merged Scheme, it is the company that commissions the R&D — not the one carrying it out — that is typically entitled to claim. Misapplying this rule means claiming costs that do not qualify, which increases enquiry risk considerably.
Overseas costs no longer qualify.
ERIS eligibility needs checking on every SME claim.
The Enhanced R&D Intensive Support scheme remains available to SMEs spending at least 30% of total expenditure on qualifying R&D, offering a more generous benefit than the standard Merged Scheme rate. It is worth assessing for every eligible client — but it requires additional analysis that adds to preparation time.
These are not edge cases. They are questions that now arise on almost every R&D engagement, and getting them wrong carries real consequences for clients and advisers alike — making HMRC tax adviser registration and compliance awareness more critical than ever
Why Claiming R&D Tax Credits Requires More Documentation
One of the most persistent challenges practices face is the gap between how clients hold their R&D information and how HMRC expects to receive it.
Most businesses do not maintain project records in a format that aligns with HMRC’s requirements. Technical information is typically spread across emails, project management tools, internal reports, and the memories of developers or engineers who were doing the work — not the finance team trying to document it months later.
Closing that gap requires significant effort from the accounting practice, including:
- Collecting and reviewing technical project information across multiple sources
- Working with the client’s technical teams to construct accurate project narratives
- Validating qualifying expenditure and reconciling cost allocations
- Preparing compliance-ready documentation that meets HMRC’s AIF requirements
- Managing multiple rounds of client communication before the claim is ready to submit
Increased Scrutiny of Every R&D Tax Credit Claim
Another factor contributing to the growing workload is the increase in HMRC compliance activity surrounding R&D tax credit claims.
In response to concerns about errors and fraudulent submissions across the scheme, HMRC has strengthened its review processes and increased the level of scrutiny applied to claims.
This has prompted many accounting practices to introduce more robust review procedures, quality control measures, and internal sign-off processes before submitting claims.
A claim that may previously have required a basic review now often involves multiple checkpoints to ensure supporting evidence is complete and compliance risks are minimised.
For practice leaders, the focus has shifted from simply preparing claims to actively managing compliance exposure and reducing the likelihood of enquiries.
Growing Pressure on Practice Resources
The increased complexity surrounding R&D tax credits comes at a time when many UK accounting practices are already facing resource challenges.
Talent shortages, rising client expectations, and ongoing regulatory changes continue to place pressure on internal teams. When resource-intensive R&D tax work is added to existing compliance workloads, capacity constraints become even more apparent.
Many firms find that senior team members are spending valuable time chasing documentation, reviewing claim files, and managing compliance processes rather than focusing on advisory work and client growth opportunities.
As workloads increase, maintaining turnaround times and service consistency becomes more difficult without additional operational support. This is particularly challenging during peak periods when tax deadlines and client demands overlap.
Rethinking the Delivery Model for R&D Tax Work
To manage growing compliance demands without compromising service quality, many UK practices are re-evaluating how R&D-related tax work is structured and delivered.
Standardised workflows, stronger documentation processes, and scalable support models are increasingly central to how forward-thinking firms operate. Outsourcing administratively heavy and compliance-intensive tax functions allows practices to protect internal capacity, maintain accuracy, and create space for higher-value advisory services.
The objective is not simply to process more claims. It is to ensure every R&D tax credit claim is prepared accurately, supported by the right evidence, and delivered efficiently — without placing unsustainable pressure on in-house teams.
Preparing for the Future of R&D Tax Credits in the UK
R&D tax credits continue to play an important role in supporting innovation across the UK. However, the process of preparing and managing claims has become considerably more demanding than it was just a few years ago.
For accounting practices, success increasingly depends on having the operational capacity to manage growing compliance expectations while maintaining accuracy and turnaround performance.
Firms that invest in scalable workflows, stronger review processes, and specialist support will be better positioned to manage the evolving demands of R&D tax credit claims while continuing to deliver exceptional service to clients.
As R&D tax credit claims become more documentation-heavy and compliance-focused, many practices are rethinking how tax work is delivered. Befree’s tax outsourcing services help UK firms manage growing workloads, maintain filing accuracy, and improve turnaround times without adding pressure to internal teams.
Ready to strengthen your tax delivery capacity?
Contact our team to discover how we help UK accounting practices scale efficiently while maintaining quality, compliance, and client service standards.
FAQs
What is an R&D tax credit claim?
How do R&D tax credits work?
How do businesses claim R&D tax credits?
What are the new rules for R&D tax credits?
What documentation is required to support an R&D tax credit claim?
Supporting documentation may include project descriptions, technical narratives, staff activity records, cost calculations, financial records, and evidence demonstrating how the project meets HMRC’s definition of qualifying R&D activities. The exact requirements vary depending on the nature of the claim.
How can accounting practices manage increasing R&D tax relief workloads?
Many firms are improving workflow standardisation, strengthening documentation processes, and using outsourced tax support to manage growing compliance requirements. These approaches help practices maintain service quality while reducing pressure on internal teams.