With the Autumn Budget 2026 taking place on 28 October, businesses will be keeping a close eye on the announcements and considering what the changes could mean for their tax position.
For businesses investing in innovation, now is a good time to make sure you have a clear understanding of the projects your business is undertaking, the costs associated with them and the evidence supporting your work.
Reviewing your R&D activity
R&D can take place across many different areas of a business and is not limited to traditional scientific research. Developing new products, improving existing processes, overcoming technical challenges or developing new software can all involve qualifyingR&D, where the relevant criteria are met.
A review can help businesses consider whether they are identifying the full range of potentially qualifying activities taking place across their operations.
Is your documentation up to date?
Good documentation is an important part of preparing a robust R&D tax incentive claim.
Businesses should consider whether they can clearly demonstrate:
· What technical challenges were being addressed
· The work undertaken to overcome those challenges
· The uncertainties encountered during development
· How the project progressed and the knowledge gained
· The costs associated with the qualifying activities
Keeping this information up to date throughout the year can make the claim process more straightforward and provide a clearer picture of the R&D being undertaken.
Are you capturing the right expenditure?
Alongside identifying qualifying activities, businesses should review how they are recording expenditure connected to their R&D projects.
Depending on the nature of the work, relevant costs can include areas such as staff costs, software, consumable materials and certain externally provided services. Understanding which costs may qualify and maintaining appropriate records can help businesses ensure their claims accurately reflect their R&D activity.
Stay informed and prepared
The Autumn Budget will provide an important update on the wider UK tax landscape. However, businesses don't need to wait for Budget Day to review their R&D position.
Importantly, it is not just changes directly affecting R&D tax relief that businesses should be aware of. Widertax measures, such as changes to employer National Insurance contributions or PAYE, could also have implications for qualifying R&D expenditure and the overall value of an R&D claim.
Taking the time now to assess your activities, documentation and expenditure can help ensure you are prepared for your next R&D tax incentive claim and are working from an accurate understanding of your current position.
At CBTax, our R&D tax specialists work with businesses across a wide range of sectors to identify qualifying activities, capture relevant expenditure and prepare robust R&D tax incentive claims.
If your business is investing in innovation, now could be a good time to review your R&D position. Get in touch with our experts today.