R&D Tax Credits

Get cash back into your business

Convert your R&D spend into cash

You could claim up to 33.35% of your R&D spend as cash.

To find out more, book a free consultation with Deepti, our specialist.

Frequently Asked Questions on R&D Tax credits

How does it work?

Any profit-making company could reduce its tax liability by claiming R&D tax relief.

What if the company has made a loss?

Even a loss-making company could claim R&D tax credit as cash back.

We are a startup and haven’t started selling yet. Could we still claim R&D tax relief on our R&D expenses?

Yes, if you are a limited company.

Our research wasn’t successful, could we still claim R&D?


Can I claim R&D tax credits as a sole trader?

No, you need to be a limited company registered in the UK.

Can a charity claim R&D tax credits?

No charity cant claim R&D tax credits though they can make a claim via its subsidiary if they have one.


Why use Watermill Accounting to claim R&D tax credits?

Most accountants only process the already identified R&D whereas Watermill Accounting specialises in identifying a wide range of R&D activities which most accountants fail to do. Only 10% of eligible businesses in the UK claim R&D tax credits. Watermill Accounting, on the other hand, has helped 100% of its clients eligible for R&D tax credits to claim back cash.

We have a very simple fee structure of 10% of the claim (tax saving or R&D cash back received) and we work ‘no win no fee’ basis. This means businesses have nothing to lose.

What is the definition of R&D activities?

R&D is classed as researching or developing a new product or improving the functionality of an existing product or service. For more details and for a one to one review of your activities, book a free consultation with Deepti, our specialist.

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Join our clients

“Watermill Accounting initiated the idea for us to recover R&D tax credit, which our previous accountants had failed to make us aware of.  To date we have recovered nearly £50,000, which has been invaluable in terms of cash flow, continuing to develop our R&D, employ additional consultants and strengthen our core business.”

Matthew Turner

Director, Goshawk Communications Ltd

Watermill Accounting has proved to be an invaluable partner for us over the past 12 months. Patience in explaining accounting processes we transitioned between ERP software and guidance to maximise opportunities offered through R&D tax credits have made the management of these areas considerably less stressful and more fruitful than they would have otherwise been. There was a lot of cleaning up required concerning our historical accounting; Watermill took this in their stride.

Julian Dudley-Smith

Director, Fluenta Solutions Ltd

” We were very pleased to receive a tax refund from HMRC. We used the money to purchase measurement equipment, which allows us to attract new customers and undertake some ground-breaking research. The Watermill Accounting team provided a valuable contribution in obtaining R&D tax credit and dealing with HMRC.”


Director, DZP Technologies Ltd

Healthera logo

”With the R&D reclaim we recovered over £28k and great assistance during the corporate account audit – the financial service we receive from Watermill Accounting is top tier.”

Martin Hao

CFO, Healthera Ltd