R&D Tax Credits - Defence & Military

Research and Development (R&D) tax credits for the military and defence sector function similarly to those in other industries but often involve specific nuances given the sensitive nature of the work. These credits incentivize innovation and technological advancements critical to national security and defence capabilities.

From developing advanced weapon systems and cybersecurity solutions to pioneering unmanned vehicles and surveillance technologies, R&D tax credits support the ground-breaking work that defines your industry. These credits enable you to tackle technical challenges, innovate continuously, and deliver superior defence solutions.

No upfront fee

We only bill when your claim is successful

£55m+

Unlocked for our clients

£7.6bn

Claimed by UK businesses in the 21/22 financial year

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R&D Tax Claim for Defence & Military

In an industry where technological superiority and innovation are paramount, leveraging every available resource is critical to maintaining national security and operational excellence. The UK government offers a powerful incentive designed to support and accelerate your innovation efforts: R&D tax credits.

For defence companies, the financial benefits of R&D tax credits can be immediate and significant. Improved cash flow can fund ongoing and future projects, enable the hiring of additional skilled personnel, or facilitate the acquisition of advanced equipment and technologies, ensuring sustained innovation and operational excellence.

The scope of qualifying R&D activities is broad, encompassing everything from new material development and advanced manufacturing processes to sophisticated cybersecurity measures and communication systems. If your projects involve technical uncertainties or innovative advancements, they likely qualify for these credits.

Discover your potential claim value today

Use our handy R&D tax relief calculator to find out how much you could be claiming back.

 R&D Calculator

What activities qualify?

Please find below some examples of activities that qualify as R&D expenditure in Defence & Military.

  • Weapon Systems Development: Innovating new weaponry, including advanced missiles, drones, and precision-guided munitions.
  • Cybersecurity: Developing sophisticated cybersecurity measures to protect military and defence infrastructure from cyber threats.
  • Communication Technologies: Creating secure and reliable communication systems for military operations.
  • Surveillance and Reconnaissance: Advancing technologies for surveillance, reconnaissance, and intelligence gathering.
  • Protective Gear: Developing new materials and designs for protective gear, such as body armour and helmets.
  • Unmanned Systems: Innovating unmanned aerial, ground, and underwater systems for various defence applications.

What can you claim?

Please find what you can include in your R&D tax relief claim.

LABOUR COSTS

an element of staff salary costs as well as employer’s NIC & employer pensions costs relating to employees’ time whilst actively engaged in research and development projects.

SUBCONTRACTOR COSTS

carried out by third parties on your behalf relating to the R&D.

MATERIALS & WASTAGE

used directly in R&D including prototyping and concept development costs.

EXPENDITURE ON SOFTWARE

where the software is required to enable the process of R&D.

UTILITY COSTS

related in specific proportions to the R&D projects.

REMUNERATED TRAVEL COSTS

where these costs occur in order to enable your R&D to occur.

Sectors

We have helped businesses across a range of sectors claim R&D tax credits for their innovative work.

MANUFACTURING

CONSTRUCTION

ENGINEERING

TECHNOLOGY & COMMUNICATIONS

AGRICULTURE

FOOD & DRINK

ARCHITECTURE

SCIENCE & MEDICINE

SOFTWARE & IT

AEROSPACE

DEFENCE & MILITARY

PHARMACEUTICAL

Our Claim Process

1. Assessment

An initial phone call or face-to-face meeting is typically the first step, so that one of our Business Development Managers (BDM’s) can discuss potentially qualifying R&D projects with you & explain the activities that can be included within an R&D claim.

2. Analysis

Following a successful eligibility check, our team will officially engage with you & request the straightforward financial information required from you and your accountant in order to analyse the R&D costs. A report call / meeting will also be carried out so that a justification report can be created.

3. Report & Sign Off

Once the claim financials and report have been completed, our team will liaise with you to discuss the final claim and get feedback from you & a confirmation that all eligible activity has been included. Following the review and claim sign off, we will submit the information to your accountant.

4. CT600 Submitted

One of the benefits of our approach is that we don’t tread on the toes of your accountant by taking over as your ‘agent’ with HMRC. We pass over the completed claim info to your accountant so that they can alter your corporation tax return (CT600) to include the figures, and also attach the report for HMRC.

5. Funds Received

Once the claim financials and report have been completed, our team will liaise with you to discuss the final claim and get feedback from you & a confirmation that all eligible activity has been included. Following the review and claim sign off, we will submit the information to your accountant.

Ready to get started?

At R&D Specialists Ltd (RDS), we’re committed to our work, aiming to improve the stature of businesses across the UK with our services. We have a rigorous process that we adhere to when working with business owners to claim their R&D tax credits, only charging a fee if your claim is successful.

If you think you may have an eligible claim & want to talk to us then don’t hesitate, we love to throw around ideas & via a quick initial phone call we’ll give you our honest & experienced opinion.

Get in touch - NOW 0161 823 5281 .