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alto.

ACCA accountants for UK creative and marketing agencies. Specialists in agency cash flow, retainer math, and director tax planning.

Alto Accounting Ltd86–90 Paul Street
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Home/Resources/R&D tax credit calculator
Updated for the merged R&D scheme

Building custom software? You could be sitting on thousands in unclaimed R&D credit.

Estimate your R&D tax credit as a UK agency. Pre-configured for web dev, MarTech, creative tech, and SaaS — with the 2024 merged-scheme rates baked in. Two minutes, no email needed for the headline number.

Run the calculatorTalk to an R&D specialist
2026/27 merged-scheme rates
Agency-specific presets
Qualifying-activity checklist
R&D processSpend in · uncertainty · credit out
QUALIFYING SPENDCREDIT+£R&D · 20% above-the-line
Beaker model
What it shows you

Most agencies don’t realise they qualify

Custom Webflow development, bespoke CRM integrations, proprietary reporting tools, data pipelines — all count as R&D when there’s genuine technical uncertainty. This calculator gives you the headline number; we help with the claim.

Check what qualifies

Interactive checklist of R&D activities common in agencies. See exactly what HMRC considers qualifying work.

01

Instant tax estimate

Get an immediate estimate of your potential R&D tax credit based on the merged R&D scheme rates.

02

Built for agencies

Pre-configured for web dev, MarTech, creative studios, and SaaS companies. Your industry, your numbers.

03

TL;DR

  • 20% tax credit for profitable companies, 14.5% for loss-making (2024 merged scheme) (£100k on £500k spend)
  • Custom software, API integrations, MarTech tools qualify if technically uncertain (Not routine work)
  • Staff salaries, subcontractors, software licenses count as qualifying costs (Detailed records)
  • Submit within 2 years of accounting period end (HMRC scrutiny high)

Built by Alto Accounting — ACCA Chartered Accountants specialising in UK agencies

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On the desk

Understanding R&D Tax Credits for Agencies

  • 1What Qualifies as R&D for Agencies. R&D tax credits reward technical innovation and problem-solving where uncertainty exists. For agencies, qualifying work includes: custom CMS or framework development beyond standard implementations, bespoke API integrations solving complex data synchronization challenges, proprietary MarTech tools with novel algorithms, complex data visualization requiring innovative rendering approaches, machine learning implementation for creative or marketing applications, and custom video processing or real-time interactive experiences. Generic website builds, standard Wordpress sites, routine CMS updates, and out-of-the-box integrations don't qualify. The key test is technical uncertainty: did your team face challenges that couldn't be solved through standard practices, requiring experimentation and novel approaches? Document your technical challenges, attempted solutions, and ultimate breakthroughs as contemporaneous evidence.
  • 22024 Merged Scheme Rates. From April 2024, the SME and RDEC schemes merged into a single R&D scheme with two rates depending on profitability. Profitable companies receive a 20% tax credit above their corporation tax line, effectively reducing their tax bill. Loss-making companies receive a 14.5% payable credit they can claim as cash. On £500,000 of qualifying R&D expenditure, a profitable company saves £100,000 in corporation tax (at 25% rate: £125,000 deduction yields £31,250 relief, plus £68,750 enhanceement credit = £100,000 total). Loss-making companies receive £72,500 cash. Qualifying expenditure includes gross salaries of staff working on R&D, employer NI contributions, pension contributions, subcontractor costs (at 65% for connected parties), software licenses directly used for R&D, and cloud computing costs for R&D. General overheads and capital equipment now have restrictions.
  • 3Documentation Requirements. HMRC scrutiny of R&D claims has intensified dramatically. You need contemporaneous technical documentation proving genuine innovation: detailed project plans showing technical uncertainty at project start, technical architecture documents explaining novel approaches required, development logs showing experimentation and problem-solving iterations, code commits and pull requests demonstrating technical challenges, testing documentation showing unexpected results requiring investigation, and team meeting notes discussing technical problems. Generic project management documentation isn't sufficient. HMRC wants evidence your developers faced genuine technical uncertainty requiring R&D. Many agencies lose claims because their documentation describes business benefits rather than technical challenges. Implement documentation processes during projects, not retrospectively when preparing claims.
  • 4Claim Process and Timing. R&D tax credit claims are submitted with your Corporation Tax return or within 2 years of your accounting period end. For example, a company with March 2024 year-end can claim until March 2026. Most agencies engage specialist R&D tax advisors (distinct from general accountants) who understand HMRC's technical requirements and maximize qualifying expenditure identification. Fees typically range from 15-25% of the credit claimed, paid only on success. HMRC processes straightforward claims in 28 days but can take 3-6 months for claims requiring enquiries. Expect detailed technical questions about your projects. Claims over £100,000 trigger higher scrutiny. First-time claimants should expect HMRC enquiries. Maintain separate time-tracking for R&D activities to support staff cost allocations. Never inflate claims with non-qualifying work,HMRC penalties for incorrect claims are severe.
Common questions

R&D for agencies, answered

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Think your agency might qualify?

A free R&D review.

We help agencies identify, document, and claim the R&D tax credits they didn’t know they were missing. Defensible claims, contemporaneous documentation, no inflated numbers.

Get a free R&D reviewSee pricing
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UK Tax Rates 2026/27
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