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R&D Tax Credit Specialists

Recruitment businesses can be eligible for R&D Tax Relief

Recruitment Accountants provide support to small to medium sized businesses that are looking to claim R&D tax credits from HMRC. 

Research and development (R&D) tax credits are a tax relief designed to encourage greater R&D spending and investment in innovation. They work by either reducing your company’s liability to corporation tax or giving you a cash payment.

Our specialist partners minimise the time you need to put into the process to ensure your claims are successful — with maximum return. 

R&D Tax Relief for Recruitment Agencies

Many recruitment business owners are surprised to learn they could be entitled to valuable R&D tax relief. If you’ve been improving technology, streamlining processes, or creating new tools, there’s a strong chance you may qualify for this incentive.

Recruitment Accountants is a dedicated division of TC Group, a UK Top 20 accountancy. Being part of TC Group means our clients have direct access to TC Group’s Innovation and R&D Tax Relief team which ensures every claim is accurate, compliant, and maximised.

Learn more about TC Group’s R&D expertise ➜

What is R&D Tax Relief and How Does It Work?

R&D tax relief is a government incentive designed to reward businesses that invest in innovation. If you’ve created something new, or significantly improved an existing process, product, or service, you may qualify.

For recruitment agencies, this can include:

  • Developing or enhancing recruitment technology platforms
  • Automating candidate sourcing, screening, or interview scheduling
  • Creating bespoke tools for client reporting or data analytics
  • Designing new onboarding, compliance, or training processes

Eligible costs, such as developer time, software, subcontractors, and consumables, are identified and claimed through your corporation tax return. The relief can reduce your tax bill or, in some cases, provide a cash credit, improving cash flow and freeing up funds for further growth.

Why Use a Specialist R&D Tax Consultant for Your Claim?

R&D claims are about more than just filling in forms, they require clear, credible evidence presented in the right way. HMRC rules are detailed, change frequently, and scrutiny has increased significantly.

Working with R&D tax consultants who understand both the recruitment sector and tax legislation is the best way to protect your claim. We offer:

  • Sector knowledge, identifying qualifying projects specific to recruitment industry
  • HMRC insight, gained through our TC Group R&D specialists who have held senior positions within HMRC
  • Complete compliance confidence, with robust and well-documented claims
  • Value maximisation, ensuring no eligible cost is missed

Our Approach to Maximising R&D Tax Claims for Recruitment Agencies

Our process is designed to save time, reduce stress, and deliver results:

  1. Discovery — we explore your projects and identify qualifying activity
  2. Documentation — we prepare a clear technical report describing your innovation
  3. Calculation — we capture all eligible costs for the best possible outcome
  4. Submission — we work with your corporation tax team to file the claim with HMRC

Compliance and support — we monitor legislative changes and handle HMRC enquiries if they arise

Do we sound like your kind of accountants?

Call us, or send us an email to arrange your free Business Review.

There’s no obligation, just a great opportunity for you to find out how we can add value to your business and help you achieve your goals.

FAQs – R&D Tax Relief for Recruitment Agencies

Do recruitment agencies really qualify for R&D tax relief?

Yes — some agencies innovate in ways that qualify, particularly around technology, automation, and process improvement.

What qualifies as R&D in recruitment?

Projects that solve technical challenges, improve efficiency, or create something new, such as bespoke software, automated workflows, or enhanced compliance systems.

What costs can I claim?

Staff salaries, employer NIC, software, subcontractor costs, and certain consumables linked to your R&D work.

How far back can I claim?

You can claim for the previous two accounting periods.

Is there a minimum claim value?

No set minimum, though claims are more beneficial when the relief outweighs preparation costs.

How long does a claim take?

Most claims are processed within 6 to 12 weeks of submission, but HMRC timelines can vary.

What happens if HMRC challenges my claim?

We prepare claims that stand up to scrutiny, and, as part of TC Group, we have the expertise to manage any enquiry.

Will an R&D claim affect other tax reliefs I use?

It can interact with other reliefs, but we ensure your claim is structured for maximum benefit.

Can small recruitment agencies claim?

Yes – R&D relief is available to businesses of all sizes if the qualifying criteria are met.

What’s the first step?

Arrange a review with us. We’ll assess your eligibility, estimate your potential claim, and guide you through the process.

Get Tax Relief Advice

If your recruitment business is innovating, you could be missing out on valuable tax savings. Let’s find out how much you could claim.

Book Your Free R&D Review here.

Contact Us To Get Started

There’s no obligation, just a great opportunity for you to find out how we could add value to your business and help you achieve your goals.


Give us a call

0845 606 9632

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