Does Your Tech Company Qualify for R&D Tax Relief in 2026?
A practical guide for UK SaaS companies, software developers, start-ups and growing technology businesses
If your business develops software, builds digital products or solves complex technical problems, some of the work you're already doing could potentially qualify for Research and Development (R&D) tax relief.
And it isn't limited to businesses with laboratories, scientists or teams explicitly described as working in "research and development".
For technology companies, qualifying R&D can potentially take place while developing software, improving existing technology or attempting to solve a technological problem where the solution isn't readily available.
In July 2026, HMRC published new introductory guidance designed to help businesses better understand whether R&D tax relief could be relevant to them.
So, could your tech company qualify?
What is R&D tax relief?
R&D tax relief is designed to support UK companies undertaking qualifying research and development in science or technology.
For a project to qualify, it isn't enough for a product simply to be new to your business.
Broadly, the project needs to seek an advance in science or technology and involve scientific or technological uncertainty.
That distinction is particularly important for technology companies.
Developing another website using established methods, for example, isn't automatically R&D.
But attempting to create new technological capabilities or overcome a technical problem that a competent professional couldn't readily solve may be very different.
What could R&D look like in a tech company?
One of the reasons technology businesses can overlook potential R&D is that the work often looks like ordinary product development.
Your developers probably aren't labelling their time "R&D".
They might simply be trying to make something work.
Potential examples can include:
Developing new software or platforms
Creating a product that requires your team to overcome genuine technological challenges rather than simply combining existing, readily available technologies.
Solving complex integration problems
Integrating systems where established methods don't provide a readily deducible solution and your team has to investigate, test and develop a new technical approach.
Improving performance or scalability
Perhaps your existing technology works with 1,000 users but struggles at 100,000.
Developing a new architecture or technical solution to overcome significant performance limitations could potentially involve qualifying R&D.
Developing new functionality
Adding a feature isn't automatically R&D.
However, developing functionality that requires an advance in technology and resolving genuine technological uncertainty could potentially qualify.
Building or improving AI and machine learning technology
There may be qualifying activity where a company is genuinely advancing the underlying technology or overcoming technological uncertainty.
Simply implementing an existing AI product or API would not, by itself, mean a project qualifies.
Improving security, data processing or infrastructure
Projects involving new approaches to cybersecurity, large-scale data processing, automation or infrastructure could potentially qualify where they meet the wider R&D criteria.
Not sure whether your project qualifies?
If your team is building, testing or solving something technically difficult, it could be worth a conversation. Zyla can help you understand whether the work may qualify for R&D tax relief.
Check Your EligibilityThe important word is "uncertainty"
A useful question to ask is:
At the beginning of the project, did your technical team already know how to achieve what you wanted to do?
If the answer was no, that's worth exploring further.
HMRC's criteria focus on scientific or technological uncertainty.
This can arise where it isn't readily known whether something is technologically feasible, or how it can practically be achieved.
There also needs to be an attempt to resolve that uncertainty.
That's why failed projects shouldn't necessarily be dismissed either.
A project doesn't have to result in a commercially successful product to have involved qualifying R&D activity.
What costs could potentially qualify?
If your project meets the requirements for R&D tax relief, qualifying expenditure may include certain costs associated with carrying out that work.
Depending on the circumstances and applicable R&D scheme, these can potentially include:
Staff costs
Software
Data and cloud computing costs
Consumable items
Certain externally provided workers
Certain contracted-out R&D
For technology businesses in particular, software, data and cloud computing expenditure can be highly relevant.
However, the rules surrounding qualifying expenditure, subcontracted work and which company is entitled to claim can be complex, so each claim needs to be considered on its individual circumstances.
There's another development SMEs should know about in 2026
HMRC has also expanded its advance assurance options for eligible small and medium-sized businesses.
Advance assurance allows an SME to provide HMRC with information about its R&D activity before making the relevant tax relief claim.
For eligible SMEs making their first R&D claim, full claim advance assurance can cover the company's first three accounting periods.
For this particular service, the company must meet several conditions, including:
It must be an SME
It must be making its first R&D tax relief claim
Turnover must be below £2 million
It must have fewer than 50 employees
Neither the company nor linked companies must previously have claimed R&D tax relief
HMRC has also introduced a targeted advance assurance pilot.
This allows eligible SMEs to seek assurance on specific complex or higher-risk areas of an R&D claim before submitting it.
The pilot is currently scheduled to run until May 2027.
For tech founders considering R&D tax relief for the first time, these options could provide greater clarity before a claim is submitted.
It is important to remember that receiving advance assurance isn't the same as making an R&D tax relief claim. The normal claiming requirements still apply.
R&D claims are about more than finding a few development costs
A robust R&D claim starts with understanding the technology.
What was the project trying to achieve?
What advance in science or technology was being sought?
What technological uncertainty existed?
Why couldn't a competent professional readily resolve it?
What work was undertaken to overcome that uncertainty?
And which costs actually relate to the qualifying R&D activity?
This is particularly important for software and technology businesses, where the distinction between routine development and qualifying R&D isn't always obvious.
Could your tech company be carrying out qualifying R&D without realising it?
Possibly.
If you're a SaaS company, software developer, technology start-up or growing digital business, don't assume R&D tax relief isn't relevant simply because nobody in your business wears a lab coat.
Instead, look at what your technical team has actually been doing.
Have you been:
Developing new technology?
Trying to solve difficult technical problems?
Experimenting with different approaches?
Building something where the solution wasn't obvious at the outset?
Investing significant development time trying to overcome technical limitations?
If so, it may be worth taking a closer look at whether some of that activity could qualify.
Your next breakthrough is worth a conversation.
Tell us what your team has been building, testing or solving. We'll help you explore whether your projects could qualify for R&D tax relief and what your next step should be.
Eligibility & project scoping
Qualifying cost analysis
Technical narrative preparation
End-to-end claim support