
When your business submits a claim for R&D tax relief, the last thing you want is an unexpected HMRC enquiry challenging that claim. R&D claim enquiry defence is the service of protecting and justifying your R&D tax credit claim during an HMRC review or investigation. At FI Group, we specialise in HMRC R&D Tax Enquiry Defence, helping SMEs and large corporations safeguard their innovation funding and navigate HMRC’s questions with confidence.
HMRC may open an R&D tax enquiry to review your claim and ensure it meets all compliance standards . This process can involve HMRC requesting further information, seeking clarification on the projects or costs, or even launching a detailed investigation into your R&D activities and expenditures. An R&D Enquiry Defence Service is a professional support service that manages this entire process on your behalf.
At FI Group, our R&D Tax Enquiry Defence service means expert consultants step in as your representatives to HMRC. We handle all communication with HMRC’s dedicated R&D compliance teams, prepare the necessary documentation, and ensure your responses fully address HMRC’s concerns. Our goal is to demonstrate that your R&D claim is legitimate and compliant, so that you can secure the tax relief you’re entitled to. Importantly, HMRC can review claims even after paying out the credit, so having a defence expert ready is wise for any company claiming R&D tax relief.
Any business claiming R&D tax credits might need enquiry defence because HMRC enquiries are relatively common and can happen for a variety of reasons. Even companies with genuine R&D projects may find their claim under scrutiny. HMRC has ramped up compliance checks in recent years due to concerns about error and fraud in R&D claims. In fact, HMRC estimated around £601 million of R&D claims were paid out in error or fraud in 2023/24 . While HMRC is checking more claims to combat this, it means more businesses are likely to face enquiries, and that enquiry activity will not be slowing down.
Without specialist help, responding to an HMRC enquiry can be daunting. If a business cannot effectively defend its R&D claim, the outcome could be a reduced credit or even a denied claim, potentially costing the company tens or hundreds of thousands of pounds. In worst cases, if HMRC suspects serious non-compliance, there could be penalties. SMEs and large corporations alike benefit from professional enquiry defence – SMEs may lack in-house tax expertise, and large companies often have complex R&D claims that require technical clarification. A service like FI Group’s ensures you have experienced tax and technical experts articulating your case to HMRC, giving you the best chance of a positive result.
Understanding why HMRC might open an enquiry on your R&D claim can help you prepare. Common triggers for R&D tax credit enquiries include :
Additionally, changes in R&D tax rules have introduced new pitfalls. Ambiguity about what qualifies as R&D is a frequent issue – many companies struggle to prove their projects achieve a scientific or technological “advance”, or HMRC’s officers may not fully grasp the technical details . Other common problem areas include handling of grants/subsidies in R&D projects, group structures (who carries out the R&D), use of subcontractors or externally provided workers, and apportioning costs correctly . With so many potential triggers, it’s clear why having experts to defend your claim is invaluable.
The R&D Claim enquiry defence process begins the moment you receive an enquiry notice from HMRC. Typically, HMRC will send a formal letter informing you that your R&D claim is under review . From that point, FI Group’s Enquiry Defence team takes charge of managing the process so you don’t have to tackle it alone.
Here’s an overview of how we work to defend your R&D claim:
Throughout this process, FI Group ensures you are kept informed at each step. Enquiries can take time – a standard HMRC R&D enquiry might last 6 to 12 months (sometimes longer for complex cases). We monitor progress, push for timely responses from HMRC, and keep you updated on any developments. By letting us manage the enquiry, you can focus on running your business while we focus on defending your claim.
Defending an R&D tax claim during an HMRC enquiry involves several structured steps. Here are the key steps typically involved:
Following these steps methodically helps ensure that no aspect of HMRC’s review is overlooked and that your R&D claim is given the strongest possible defence.
Engaging a professional enquiry defence service like FI Group brings significant advantages to your business:
At FI Group, we assemble a cross-functional team for each enquiry defence case. Typically, a tax consultant and a technical specialist will work together on your claim, combining their expertise. This blended approach is essential because R&D enquiries scrutinise both the numbers and the science behind the claim. By covering all bases, we ensure a thorough defence.
While you can’t always prevent an HMRC enquiry, you can prepare for one – even before you submit your R&D claim. Here are some proactive steps businesses can take to be enquiry-ready:
By taking these steps, businesses put themselves in a much stronger position should HMRC come knocking. Essentially, preparation is about being able to substantiate your R&D claim at any time. The more prepared you are, the smoother the enquiry process will go.
Claiming R&D tax relief is a crucial financial boost for innovative businesses in the UK. However, with the introduction of the Advanced Notification Form (ANF), companies must now be more proactive to secure their claims. In this blog, we will guide you through everything you need to know about the ANF, from eligibility and submission to expert insights and future developments.
The Advanced Notification Form (ANF) is a new requirement introduced by HMRC to streamline and monitor R&D tax relief claims. It acts as an early declaration of a company’s intention to claim R&D tax relief for a particular accounting period. Essentially, it is a formal notification that alerts HMRC to expect a claim.
The ANF ensures transparency and helps HMRC manage claims more efficiently. For businesses, submitting the ANF is now critical because, without it, they risk losing eligibility for R&D tax relief altogether, particularly if they are making a claim for the first time or have not claimed in recent years.
If you’re planning to claim R&D tax relief or expenditure credit for accounting periods beginning on or after 1 April 2023, you must submit a claim notification form if:
If your company has been consistently claiming R&D tax relief without gaps, you might not need to submit an ANF. However, if unsure, it is always best to confirm.
To be eligible, your company must:
Yes. The ANF must be submitted within six months of the end of the accounting period when the R&D activity began. Missing this deadline will mean you cannot claim R&D tax relief for that period.
Businesses must complete and submit the ANF electronically through HMRC’s online portal. Paper forms are not accepted.
You will need:
Common pitfalls include:
Attention to detail is crucial to avoid delays or rejections.
Submitting the ANF ensures your company is eligible to claim R&D tax relief. It also demonstrates a level of organisation and professionalism that HMRC values, potentially leading to a smoother review process.
Failure to submit the ANF when required means your company will be barred from claiming R&D tax relief for the accounting period in question. Correct and timely submission safeguards your ability to benefit from generous tax relief opportunities.
Q: Can I edit my ANF after submission?
A: No, you cannot edit a submitted form. Ensure all details are accurate before submission.
Q: What if I submit the ANF late?
A: You will not be able to claim R&D tax relief for that period.
Q: Is an ANF needed every year?
A: No, only if you are a first-time claimant or have not claimed in the last three accounting periods.
The UK government has signalled ongoing reforms to R&D tax credits, including closer scrutiny of claims and efforts to combat fraud. While no immediate changes to the ANF process have been announced, businesses should stay vigilant as updates can happen quickly.
The ANF is now an essential step for many companies wishing to benefit from R&D tax relief. Being proactive, thorough, and timely will ensure your company can access the support it needs to innovate and grow. If you are uncertain about the process, professional advice is highly recommended to avoid costly mistakes.
The EIC Transition grant, part of the European Innovation Council’s Horizon Europe programme, offers substantial funding to support the maturation and validation of novel technologies. This grant is designed to help SMEs, start-ups, and research organisations bring their innovations from the lab to the market. With up to €2.5 million available per project, the EIC Transition grant is a golden opportunity for innovators to scale their technologies and develop sustainable business models.
Funding Body | European Innovation Council (EIC) |
Total Grant Funding Pot | €98 million |
Amount Each Project Can Be Awarded | Up to €2.5 million |
Grant Themes | Technology validation, business development, market readiness |
Eligibility Criteria | SMEs, start-ups, spin-offs, research organisations, universities |
Open Date | 22 April 2025 |
Close Date | 17 September 2025 |
To be eligible for the EIC Transition grant, applicants must meet the following criteria:
The EIC Transition grant is specifically designed to support projects that have already demonstrated proof of concept and are ready to move towards market readiness. This means that the technology must have completed all elements of TRL 3 and be ready for further development and validation in relevant application environments.
The EIC Transition grant focuses on:
The EIC Transition grant offers significant value to funded projects:
The application process for the EIC Transition grant includes the following steps:
Projects funded by the EIC Transition grant must include specific milestones and KPIs to track progress towards market readiness. Proposals must demonstrate a credible pathway to market, including plans for intellectual property protection and addressing regulatory and certification requirements.
The EIC Transition grant is part of the Horizon Europe programme, which aims to support high-potential innovations across various fields of science and technology. The grant focuses on both technology and business development to ensure that projects are ready for market deployment.
See a previous winner of the EIC Grant here.
Projects funded by the EIC Transition grant must:
FI Group offers comprehensive support for applicants, including:
The UK Space Agency’s National Space Innovation Programme (NSIP) – Call 2 is now open for applications. This prestigious grant funding competition aims to support groundbreaking space technologies, applications, and services, driving innovation and commercialisation in the UK space sector. With a total funding pot of £17 million, NSIP Call 2 offers substantial financial support to de-risk high-reward projects and catalyse investment into the UK’s space industry.
Funding Body | UK Space Agency |
Total Grant Funding Pot | £17 million |
Amount Each Project Can Be Awarded | £150,000 to £2,000,000 |
Grant Themes | Space Domain Awareness, In-Orbit Servicing, Assembly and Manufacturing, Space Data for Earth Applications, Position, Navigation and Timing, Satellite Communication Technology |
Eligibility Criteria | UK-based organisations, including businesses, universities, and research organisations |
Open Date | 23 April 2025 |
Close Date | 8 May 2025 (Outline Proposal), 23 July 2025 (Full Proposal) |
To apply for this grant with our expert grants writing service, contact our team using the button below.
To be eligible for NSIP Call 2, applicants must be UK-based organisations, including businesses, universities, and research organisations. Projects must have a clear space use-case and demonstrate national benefit. Non-domestic partners can participate but must bring their own funding.
NSIP Call 2 seeks proposals for innovative space technologies, applications, and services. Projects should align with one or more of the following themes:
The NSIP Call 2 grants aim to:
The application process for NSIP Call 2 involves two stages:
NSIP Call 2 offers co-funded grants ranging from £150,000 to £2,000,000 per project. The funding is provided on a cost recovery basis, with payments made upon successful delivery of milestones. Projects can be funded under two strands:
Successful projects are expected to kick off by 10 November 2025 and conclude by 31 March 2027. Applicants are encouraged to submit an Expression of Interest by 23 April 2025. This helps the UK Space Agency organise the assessment process and allocate resources effectively.
The National Space Innovation Programme (NSIP) aims to make the UK one of the world’s most innovative and attractive space economies. NSIP supports high-reward projects through co-funded grants, driving innovation and commercialisation in the UK space sector. The programme aligns with the National Space Strategy, contributing to the UK’s strategic goals in space technology and applications.
Projects must:
FI Group offers expert support to navigate the NSIP Call 2 application process. Our services include:
The Cyber Local 2025-2026 Grant Funding Competition, backed by the Department for Science, Innovation and Technology (DSIT), offers UK registered organisations a unique opportunity to secure funding for projects aimed at bolstering the cyber security sector and enhancing cyber security skills across various regions. With a total funding pot of £1.8 million, this competition is designed to address geographical disparities and reduce the skills gap in the cyber security industry.
Funding Body | Department for Science, Innovation and Technology (DSIT) |
Total Grant Funding Pot | £1.8 million |
Amount Each Project Can Be Awarded | £25,000 – £150,000 |
Grant Themes | Cyber security sector growth, cyber security skills development |
Eligibility Criteria | UK registered business, academic institution, research and technology organisation (RTO), charity, not for profit, public sector organisation |
Open Date | 17 March 2025 |
Close Date | 30 April 2025 |
Thinking of applying? Using our Innovation Funder App you can assess your project’s suitability. Contact us now for more information.
To be eligible for the Cyber Local 2025-2026 grant, your organisation must be UK registered and fall into one of the following categories:
Additionally, your project must:
The Cyber Local 2025-2026 grant aims to support projects that:
The grant funding will enable projects to:
To apply for the Cyber Local 2025-2026 grant, follow these steps:
The Cyber Local 2025-2026 grant offers up to 100% funding for eligible project costs, with a maximum grant of £150,000. Projects must demonstrate clear impact in the cyber security sector and align with the competition’s themes.
The competition encourages applications that support women into the cyber workforce and initiatives aimed at inspiring young girls to consider a technology career. Projects should complement or build on existing CyberFirst activities and demonstrate collaboration with local organisations or government bodies.
The Cyber Local 2025-2026 grant is part of Innovate UK’s efforts to resolve geographical disparities in the cyber security sector and reduce the skills gap. The programme prioritises projects with a presence in the specified geographical areas and aims to fund a variety of projects across different locations.
Projects must:
FI Group offers expert guidance and support throughout the application process for the Cyber Local 2025-2026 grant. Our team can help you navigate the eligibility criteria, develop a compelling project proposal, and ensure your application meets all requirements.
On December 1, 2023, Defence Ministers announced the launch of the AUKUS Pillar II Innovation Challenge, focusing on undersea Command, Control, and Communications. This trilateral competition aims to foster ground breaking innovations in autonomous systems, enhancing operational capabilities from seabed to space.
Funding Body | Advanced Strategic Capabilities Accelerator (ASCA), Defence and Security Accelerator (DASA), Defence Innovation Unit (DIU) |
Total Grant Funding Pot | Up to $8 million (US) |
Amount Each Project Can Be Awarded | Funding for 3-10 proposals |
Grant Themes | Undersea Command, Control, and Communications |
Eligibility Criteria | Open to submissions from any nation in Stage 1 |
Open Date | April 3, 2025 |
Close Date | April 28, 2025 |
The AUKUS Pillar II Innovation Challenge is focused on enhancing undersea Command, Control, and Communications. The competition seeks innovations that enable near real-time communications between Undersea Vehicles (UVs) and Command and Control (C2) Systems. It also aims to optimise bandwidth utilisation and effective range in contested environments, provide secure and efficient navigation for Uncrewed Undersea Vehicles (UUVs), and facilitate large data transmission with minimal interception risk.
The application process for the AUKUS Pillar II Innovation Challenge involves two stages. In Stage 1, applicants must submit a brief overview of their innovation, including its technical merits and rough order of magnitude costs, by April 28, 2025. Successful Stage 1 applicants will be invited to submit detailed proposals in Stage 2, with a deadline of July 7, 2025.
The AUKUS Pillar II Innovation Challenge is part of a broader effort to leverage autonomous systems for operational advantages from seabed to space. The program seeks to address critical undersea infrastructure protection and enhance the capabilities of autonomous platforms.
Programme Background:
Project Requirements:
FI Group offers expert guidance and support throughout the grant application process. Our team ensures compliance with all requirements and maximizes your chances of securing funding. We assist with proposal preparation, technical documentation, and strategic planning to help you succeed in the AUKUS Pillar II Innovation Challenge.
Funding Organisation | Innovate UK |
Competition Title | Innovation Loans Future Economy: Round 20 |
Total Funding Available | Up to £25 million |
Maximum Funding per Project | £100,000 to £2 million |
Submission Deadline | 2nd Jul 2025 |
Submission Portal | Innovate UK Online Submission Service |
Contact Information | support@innovateuk.ukri.org |
Innovate UK Innovation Loans offers up to £25 million in loans to SMEs for highly innovative late-stage R&D projects. These projects should have strong commercial potential and the ability to significantly improve the UK economy. The loans are intended to support projects that lead to innovative new products, processes, or services that are significantly ahead of others currently available, or propose an innovative use of existing products, processes, or services.
The competition aims to support projects that:
Submission Deadline: Proposals must be submitted by 2nd Jul 2025 via the Innovate UK Online Submission Service.
Funding Rounds: The competition is part of a series of funding rounds, with the next round opening on the day the previous round closes.
Proposals will be evaluated based on:
Net Zero
Health and Wellbeing
Next Generation Digital Technologies
Technology Families
Find out some of the project Innovate UK has funded over the past two decades here.
Innovate UK Innovation Loans come with specific costs that applicants need to consider. During the availability period, which can last up to three years, borrowers will pay interest at a rate of 3.7% per annum on the amount borrowed, with additional interest at the same rate accrued and deferred until the repayment period. If the project extends into the extension period, which can last up to two years, no further drawdowns are allowed, but interest continues to accrue at 3.7% per annum. During the repayment period, which can last up to five years, borrowers will repay the principal amount along with the accrued interest on a quarterly schedule, with an interest rate of 7.4% per annum on the outstanding loan amount. The overall term of the loan must not exceed seven years. It is crucial for applicants to ensure that their business can manage these costs and maintain a healthy cash flow to cover both interest and principal repayments on time.
The Innovate UK Innovation Loans Future Economy competition offers a significant opportunity for SMEs to secure funding for innovative projects with strong commercial potential. To maximise your chances of success, consider using FI Group’s in-house loan application specialists. This service can help you strategically plan and develop your loan application, ensuring that all key criteria are met and your proposal stands out. With expert guidance and tailored support, FI Group can assist you in navigating the complexities of the Innovate UK Innovation Loans application process, identifying potential challenges, and crafting a compelling proposal. This comprehensive approach will enhance your chances of securing the funding you need for your innovative project.
Unlock Innovation with the Investor Partnerships – Health Technologies, West Yorkshire: Round 2 Grant
The Investor Partnerships – Health Technologies, West Yorkshire: Round 2 grant funding competition is now open for UK registered SMEs. This initiative, led by Innovate UK in collaboration with the West Yorkshire Combined Authority, aims to boost innovation in the health technology sector within West Yorkshire. With a total funding pot of £3.9 million, this competition provides a unique opportunity for ambitious SMEs to secure the financial support needed to advance their innovative projects.
Funding Body | Innovate UK and West Yorkshire Combined Authority |
Total Grant Funding Pot | £3.9 million |
Amount Each Project Can Be Awarded | £50,000 to £2 million |
Grant Themes | Health technology innovation |
Eligibility Criteria | UK registered SMEs |
Open Date | 24 February 2025 |
Close Date | 9 April 2025, 11:00am |
Why FI Group
FI Group helps SMEs successfully navigate the grants writing process in order to maximise their chances of success in funding. We have built long-term partnerships with our clients to help them navigate various funding challenges that arise at different commercial stages. Having operated for 25+ years in this sector, our team of Science and Engineering PhD grant writers have the experience necessary to enhance your applications.
To be eligible for the Investor Partnerships – Health Technologies, West Yorkshire: Round 2 grant, your organisation must:
The focus of this grant is on human health technology innovation. Projects can address various health challenges, including:
The grant aims to:
To apply for the grant:
FI Group offers comprehensive support services to help SMEs navigate the application process for innovation funder grants. Our expertise ensures your project proposal is robust, meets all criteria, and maximises your chances of securing funding.
The European Space Agency: Space For a Sustainable Textile Industry grant funding invites proposals for feasibility studies aimed at enhancing transparency, sustainability, and resilience across the cotton value chain and the wider textile industry. This call supports the European Green Deal, the Circular Economy Action Plan, and the Industrial Strategy, which highlight textiles as a priority sector for advancing a carbon-neutral, circular economy.
Detail | Information |
---|---|
Funding Organisation | European Space Agency (ESA) |
Grant Amount | Up to £200,000 |
Application Deadline | 23 March 2025 |
Eligibility Criteria | Companies developing space-enabled services and products related to the textile industry; includes the UK |
To be eligible for the European Space Agency: Space For a Sustainable Textile Industry funding, your project must meet the following criteria:
ESA seeks proposals that leverage space-based solutions to address key challenges in the textile industry. Relevant topics include:
Space-based technologies play a crucial role in addressing these challenges:
The application process for European Space Agency: Space For a Sustainable Textile Industry has a few steps:
ESA offers funding and support for business case assessment and the development of new, space-based services. The funding includes:
The ESA call aligns with the European Green Deal and the Circular Economy Action Plan, which prioritise the textile sector for advancing a carbon-neutral, circular economy. The textile industry is a significant consumer of raw materials and water, and a major contributor to greenhouse gas emissions. This call aims to mitigate the environmental impact of cotton cultivation and promote sustainable practices.
At the end of your project, you must:
At FI Group, we specialise in helping businesses navigate the complexities of grant applications. Our innovation funder grants service is designed to guide you through every step of the application process, ensuring that your project stands out and meets all eligibility criteria. With our expertise, you can maximise your chances of securing funding and successfully implementing your space-enabled textile project. Contact us today to learn more about how we can support your grant application journey.