Tax Consultancy Specialising In R&D Tax Relief

Our Unique Approach

Who We are

We are unique in that we have consultants recruited straight from relevant industries, giving them practical, hands-on expertise which allows them to fully grasp the specific technical details and complexities involved in every project.

What We do

We match consultants with clients aligning their professional expertise to ensure the best possible fit to qualify and support projects.

How we are different

We take pride in truly understanding your business and innovation journey. In a typically transactional industry, we believe the real value lies in a genuine partnership, one that delivers tailored, collaborative support every step of the way.

What is Research & Development Tax Relief?

Definition

Research and Development (R&D) tax relief is a government incentive that has existed for 25 years in the UK. It rewards businesses that undertake innovative projects that seek to overcome technological or scientific uncertainties. It provides a tax credit based on a portion of the projects qualifying expenditure, meaningfully reducing a company’s tax liability.

Recent updates to R&D tax legislation have added layers of complexity to the claims process. This makes it critical to partner with a specialist firm that blends deep technology knowledge with up-to-date insight into the shifting R&D landscape, ensuring the claim is thorough, complaint and maximised.

Types of Relief

RDEC: Research & Development Expenditure Credit

The R&D Expenditure Credit (RDEC) is a UK tax relief designed to reward innovation for companies taking on technically challenging projects, directly supporting the risk you take to solve technological or scientific challenges.

Your project(s) must attempt an advance in technology or science, face uncertainty that wasn’t easily resolvable by a professional in the field and show you tried to overcome the uncertainty. Successful claims give you a taxable credit of 20% of your qualifying expenditure, paid as cash if you have no Corporation Tax to offset.

ERIS: Enhanced R&D Intensive Support

This applies to Loss-making R&D intensive small or medium enterprises (SMEs) who’s qualifying expenditure constitutes for at least 30% of total expenditure in the same financial period, for periods after 1 April 2024. Under ERIS, eligible SMEs will receive 27p for every £1 spent on qualifying expenditure.

The intensity ratio does include any connected companies, total expenditure for all will be included when calculating R&D intensity.

R&D Qualifying Expenditure Explained

Qualifying expenditure for R&D includes any allowable costs a company incurs while undertaking technically challenging projects to overcome scientific or technological uncertainties

  • Gross salaries, employer pensions, employer NIC, bonuses are eligible when claiming R&D tax credits. An apportionment of these costs contributes towards the overall qualifying expenditure.

  • Payments to subcontractors, or external agencies for R&D activities undertaken on your behalf as part of a qualifying R&D project are eligible. An apportionment of these costs contributes to the overall qualifying expenditure.

  • If you subcontract part of your R&D to external contractors or agencies, for R&D activities undertaken on your behalf  

  • Costs for computer software licences, data and cloud computing used in R&D activities are eligible as qualifying expenditure.

  • Materials utilised as part of the R&D process, for example prototyping, fuel, water and electricity costs.

Industries

Engineering

Manufacturing

Software

Construction

Architecture

Agriculture

Biotechnology

Engineering Manufacturing Software Construction Architecture Agriculture Biotechnology

  • The team at Kraken are extremely knowledgeable about R&D tax claims and make the entire process as seamless as possible. Following meetings with our design team, Kraken handled all the hard work of preparing the necessary technical reports for the claim. They also guided us through gathering the required financial information, liaising directly with our accountant where necessary. They have successfully enabled us to submit multi-year R&D tax claims without any complications with HMRC. I have no hesitation in recommending this friendly, professional, and knowledgeable company to anyone considering their services.

    Managing Director of Precision Engineering Firm, Maidenhead

  • I've had the pleasure of partnering with Kraken Finance to support several of my clients with their R&D tax credit claims, and the results have been outstanding every time. Their specialists quickly grasp the technical innovations involved, produce robust claim documentation that stands up to HMRC scrutiny, and have secured significant cash repayments that have directly funded further development work.

    What I particularly appreciate is their collaborative approach, they keep me fully in the loop, respect my client relationships, and ensure everything is handled efficiently so I can focus on broader advisory services. The claims process is complex, but with Kraken Finance, it feels seamless and dependable. I have no hesitation in endorsing them to other accountants or businesses exploring R&D relief.

    Managing Director of Accountancy, Bristol

  • I had claimed R&D tax relief several years ago but stepped away from it, convinced that only certain projects qualified, not our everyday design work. Kraken Finance proved me wrong. They thoroughly reviewed our recent projects and identified qualifying activities we'd completely overlooked over the past two years. The entire process was clear, straightforward, and they scheduled around my team's availability. Highly recommended

    Owner of Architecture Practice, Liverpool

How we partner with you

  • Discuss to understand which government incentives are applicable today, and could be applicable in future.

  • Identify the relevant periods available for a claim and discuss the relevant projects in detail to understand where the technical uncertainty and subsequent advancements is.

  • Create a compliant technical narrative justifying how the project(s) meet the eligible criteria and associate the relevant qualifying expenditure to the relevant project(s)

  • Given our expertise in understanding the ever-evolving R&D legislation, we offer a enquiry defence service. Where we will comprehensively review the claim in dispute, the case HMRC have put forward and if viable, defend the claim in question.

READY TO CLAIM?

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