In this blog, NISH member LimestoneGrey discusses how to protect your business in a higher-scrutiny Research and Development tax landscape.

R&D tax relief remains a valuable incentive for companies in the sport, health and wellbeing sector that are investing in genuine scientific and technological advancement. Whether a business is developing performance technology, injury prevention tools, digital health platforms, wearable devices, rehabilitation systems, nutrition products, wellbeing software, recovery solutions or new training technologies, R&D tax relief can provide important support.

A Changing R&D Tax Relief Landscape

HMRC has significantly increased its scrutiny of R&D claims following concerns around error, abuse and poor-quality advice. Claims are now expected to be more detailed, better evidenced and clearly aligned with the definition of qualifying R&D. The introduction of the Additional Information Form has also raised the standard of reporting, meaning companies must explain the advance sought, the uncertainties faced, the work undertaken and the costs claimed in a more structured way.

For sport, health and wellbeing businesses, this matters. These sectors often involve innovative products and platforms, but the qualifying R&D can be technically complex. The uncertainty may sit within biomechanics, wearable sensor accuracy, data analysis, software performance, health monitoring, material performance, recovery methodology or the reliability of a system in real-world conditions.

A claim must do more than describe a new product, app, service or wellbeing solution. It must explain why the scientific or technological challenge could not be readily solved by competent professionals.

A Spotlight on R&D Tax Adviser Standards

R&D tax credit adviser standards are becoming increasingly important, with a range of new initiatives being introduced to raise quality, accountability and professionalism across the market. For example, since May 2026, tax advisers who interact with HMRC on behalf of clients are required to register with HMRC and meet minimum standards. This reflects the direction of travel: a more accountable tax advice market, with greater focus on compliance and responsible claim preparation.

As a business, you want an adviser who has already been operating to these professional standards, not one now scrambling to meet the minimum threshold as the market catches up.

Why Regulation Matters for Innovative Businesses

As a business, you want to choose an adviser that adheres to professional standards and one that has the experience needed to support your development journey. A poorly prepared R&D claim or bad unregulated advice can lead to HMRC enquiries, delayed repayments, penalties, amended tax returns and unnecessary management distraction. It can also create issues during investment, grant funding, due diligence or acquisition, particularly where historic claims cannot be properly supported.

As HMRC continues to raise expectations and adviser regulation becomes more important, working with a regulated and chartered tax consultancy is not just a quality decision, it is a way to protect your business and ensure your R&D claim is fit for the future.

Matthew Jones, Managing Director at LimestoneGrey commented: ‘For innovation-led companies, regulation should not be seen as a barrier to claiming. It should be seen as a mechanism to claim properly.

LimestoneGrey has been regulated since our inception in 2017 because we believed from the outset that companies deserve more than transactional R&D tax advice. They deserve support from a firm operating to recognised professional standards, with accountability, technical competence and care built into the process. We are not playing catch-up as the market changes, we have always believed this is the standard businesses should expect.

Companies in the sectors mentioned are often carrying out exactly the kind of work the R&D tax relief regime was designed to support. But in a higher-scrutiny environment, claims need to be accurate, evidence-led and professionally prepared. If your claim focuses on the wrong elements of your development journey, or includes costs that do not qualify, the consequences can be significant, even though the underlaying R&D is sound.

This is why choosing the right adviser is now a key part of protecting your business.’

LimestoneGrey is a regulated, chartered tax consultancy who approach R&D tax relief as a professional tax matter, not simply as a funding exercise. Their role is to help identify genuine qualifying R&D, gather the right evidence, prepare robust technical narratives and ensure claims are prepared responsibly.