In this blog, NISH member LimestoneGrey discuss 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.

However, the landscape has changed.

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.

LimestoneGrey has always approached R&D claims in this evidence-led way; however, the Additional Information Form has helped raise reporting standards across an industry as many advisers had not previously applied the same level of rigour.

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, user-specific personalisation, material performance, recovery methodology, manufacturing processes, 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 Changing R&D Tax Relief Landscape for Sport, Health and Wellbeing Companies

R&D tax credit adviser standards are becoming increasingly important as HMRC and the wider tax profession continue to introduce measures designed to raise quality, accountability and professionalism across the market.

From 18 May 2026, HMRC began rolling out mandatory registration for tax advisers who interact with it on behalf of clients, phased by adviser type through to 31 March 2027, with each group given three months from the start of its window to register and meet minimum standards. This reflects the direction of travel: a more accountable tax advice market, with greater focus on professionalism, compliance and responsible claim preparation.

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

A poorly prepared R&D claim 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.

A claim that tells the wrong technical story, or includes costs that should not be claimed, can create significant risk for your business — from HMRC challenge and delayed repayments to penalties and wider due diligence concerns.

A Spotlight on R&D Tax Adviser Standards and Why They Matter for Sport, Health and Wellbeing Companies

In a changing market, 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.

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

We have been regulated since our inception in 2017. We made that decision because we believed companies deserved R&D tax advice delivered to a professional standard, not as an unregulated claims service. As HMRC raises expectations across the market, we are not playing catch-up, we have operated to these standards from the beginning.

For innovation-led companies, regulation should not be seen as a barrier to claiming. It should be seen as a reason to claim properly.

Sport, health and wellbeing companies 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.

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, support genuine innovation and ensure your R&D claim is fit for the future.