R&D tax credits remain one of the most valuable reliefs available to UK businesses investing in innovation. The scheme allows companies to claim back a portion of their R&D expenditure, either as a cash credit or a reduction in their corporation tax bill.

While many companies are reaping these benefits, the R&D tax advisory sector is booming alongside. With so many advisors clamouring for your attention, getting a sense of the cost of making a claim is can feel like a maze.

Business owners and finance directors are asking harder questions about fees, particularly as HMRC scrutiny intensifies and the consequences of poor-quality claims become more severe. Transparent fees might not be easy to come across, but we’re here to help.

Typical R&D Tax Pricing Models in 2025

The R&D tax credit market uses several distinct pricing models, each with advantages and drawbacks depending on your circumstances.

Percentage Fees

Percentage fees, or contingency-based pricing, where advisors charge a percentage of the benefit received, is largely the industry favourite model. Typical rates range from 10% to 30% of the total tax credit or relief obtained. This model appeals to businesses because it requires no upfront payment and incentivises an advisor to claim the full amount possible.

However, it can become expensive on larger claims and may not fully reflect the complexity of the work involved. A straightforward claim worth £100,000 might cost you £20,000 in fees, while a highly complex claim worth the same amount would cost exactly the same despite requiring significantly more work.

A percentage structure may be tiered, as in Myriad’s pricing model, where your fees scale down as your claim scales up.

Fixed Fees

Fixed-fee models are becoming more prevalent as businesses demand greater cost certainty. They also reward efficiency, as your advisor seeks to work quickly and effectively to keep their own costs down.

For smaller claims, typically those under £50,000 in benefit, fixed fees might range from £3,000 to £5,000. Mid-sized claims often attract fees between £5,000 and £15,000. Larger or more complex claims can command more, depending on the scope of work required. Fixed fees reward efficiency and provide budget certainty, though they require the advisor to accurately scope the work upfront.

Hybrid Models

Hybrid models combine elements of both approaches. For example, a company may charge a modest fixed fee to cover the base work, plus a smaller success percentage of 5-10%. This balances risk sharing with cost predictability and can work well for businesses with moderate but uncertain claim values.

Hourly Rates

Though uncommon, some claimants are only looking for minimal input from an advisor, at an early or late stage. When the scope of work is not yet certain, an hourly rate and robust reporting method from an advisor may suit some projects better than the heftier fees expected with the above models.

Software Tools

Software models represent the newest evolution in the market. Platforms like Tax Cloud, which is widely regarded as best in class for software-driven R&D claims, offer businesses the tools to prepare their own claims at significantly lower cost.

These platforms usually have much lower percentage fees than your usual full-service advisor. For example, Tax Cloud charges a 5% fee on tax savings up to £250,000, and 2.5% on any tax savings thereafter.

The trade-off is that businesses must invest their own time and technical expertise in preparing the claim. For companies with strong internal finance functions and clear documentation, this can deliver exceptional value. For those without these capabilities, the time cost and risk of errors may outweigh the fee savings.

Factors That Influence R&D Claim Costs

The cost of engaging a third party to prepare an R&D tax credit claim varies depending on several factors. Of course, you can expect the fee structure and level of support you require from your advisor to impact your costs, however your own project will decide the direction you take.

Project complexity plays a major role. A company with one straightforward software development project will require far less work than a business running multiple concurrent projects across different technical disciplines.

The size and structure of the business also matter. SME claims tend to be more straightforward than claims for large companies, though this is not always the case. Large companies often have more sophisticated internal processes and better existing documentation, which can reduce the work required. Conversely, some SMEs have excellent records while others need significant support to piece together their qualifying activities.

The quality of existing documentation is perhaps the single biggest variable. Businesses that maintain strong project records, track staff time effectively, and document technical uncertainty as they go will face lower claim preparation costs. Those starting from scratch, with minimal records and unclear project boundaries, require substantially more work to build a compliant claim.

Understanding the level of support your business actually needs is central to getting value and will greatly impact which fee structure you choose to pursue.

Hidden Costs and Risks to Watch Out For

The headline fee for an R&D claim tells only part of the story. Several hidden costs and risks deserve careful consideration.

In 2025, with HMRC applying greater scrutiny and imposing penalties for incorrect claims, it’s best to be prepared to defend your claim. You may face clawback of the relief claimed, interest charges, and potentially penalties of up to 100% of the incorrect amount in cases of deliberate error. A cheap claim that saves you thousands in fees today could cost you tens of thousands of pounds in penalties tomorrow.

Many reputable advisors include some level of enquiry support in their fees, but others charge separately for this work. Clarifying what is included before you engage is crucial. Myriad guarantees full support in an HMRC compliance check as part of the service for claims submitted with us.

Budget services and DIY approaches carry time costs that are easy to underestimate. Preparing a compliant R&D claim requires gathering records, interviewing technical staff, mapping projects to qualifying activities, drafting narratives, and reconciling finances. For a typical SME claim, this might represent 30 to 40 hours of work. If your finance director's time is valuable, the internal cost of preparing your own claim may exceed the fee a specialist would charge. Moreover, without experience, you may miss qualifying activities or make errors that reduce your claim value or increase compliance risk.

How to Get the Best Value for Your Claim

Getting value from your R&D claim starts with choosing the right advisor or approach for your circumstances.

Look for specialists with genuine technical expertise in your field. Ask about the qualifications and background of the people who will actually work on your claim. Technical specialists with science or engineering degrees, working alongside tax professionals, typically deliver better outcomes than generalists or, even less helpful, sales teams.

Ask specific questions before you engage. This may include:

• How many claims has the advisor prepared in your industry?
• What is their track record with HMRC enquiries?
• What happens if HMRC opens an enquiry after the claim is submitted?
• How do they stay current with changing HMRC guidance?
• Are they held accountable by a chartered or accredited organisation (e.g., ACCA, CIMA, ICAEW…)? Do they follow anti-money laundering procedures?

Think about return on investment rather than cost alone. A more expensive advisor who identifies additional qualifying activities or structures your claim more effectively may deliver more value. Similarly, an advisor who helps you avoid an HMRC enquiry through robust documentation provides value that exceeds their fee.

How Much Does an R&D Tax Credit Claim Cost?

In 2025, a reasonable R&D tax credit claim should cost between 10% and 25% of the benefit for contingency-based arrangements, or between £5,000 and £15,000 for fixed-fee services, depending on complexity. Software platforms offer options from around £2,750, though these require significant internal investment.

However, the value of an R&D claim lies not just in the relief obtained but in the quality of the process, the strength of the documentation, and the reduction in compliance risk.

Choose your advisor based on expertise, transparency, and fit with your business needs rather than on price alone. Ask hard questions, understand what is included, and consider the full return on investment. What you save in fees should never cost you in lost relief or increased risk.

You can read more about Myriad’s pricing structure for R&D tax credit claims here.

If you would like a tailored assessment of what your claim should cost based on your specific circumstances, or if you would like to discuss the best approach for your business, get in touch with our friendly team for a no-obligation chat.