Artificial Intelligence (AI) and Machine Learning (ML)

BC&A Innovation

R&D Spotlight

Artificial Intelligence (AI) and Machine Learning (ML) are transforming industries across the UK — from finance and healthcare to manufacturing, logistics, and beyond. Whether it’s powering recommendation engines, optimising business processes, or detecting fraud, businesses applying AI and ML are often pushing the boundaries of what’s technically achievable.

However, applying AI or ML is not enough to qualify for R&D tax relief. To be eligible, your work must go beyond simply using existing models or frameworks. You must be tackling scientific or technological uncertainties to achieve an advancement in technology — for example, by improving model accuracy, solving data processing challenges, or developing algorithms where no off-the-shelf solution is available.

Here are some examples of qualifying activities in AI and machine learning development:

Developing Novel Algorithms or Model Architectures

Engineering bespoke AI models — such as neural networks, decision trees, or natural language processing systems — to solve problems in new or improved ways where standard models are insufficient.

Improving Model Accuracy, Performance, or Reliability

Experimenting with model architecture, training data, or feature selection to improve the performance of AI systems in real-world scenarios, particularly where accuracy or consistency is a technical challenge.

Solving Data Processing or Integration Challenges

Developing methods to clean, process, or structure unlabelled, incomplete, or noisy data — such as audio, video, sensor, or customer interaction data — to make it usable for AI model training.

Engineering Real-Time or On-Device AI Systems

Creating AI solutions that operate in real-time or on resource-constrained devices like smartphones, wearables, or edge computing platforms, where optimising speed and memory usage requires technical problem-solving.

Developing AI Explainability and Transparency Tools

Building systems that make AI decision-making more interpretable and explainable to end-users or regulators, particularly in high-stakes sectors like finance, healthcare, or law.

Enhancing Data Privacy and Model Security

Developing privacy-preserving techniques such as federated learning, homomorphic encryption, or differential privacy to ensure data security during model training or deployment.

Integrating AI into Complex Systems or Workflows

Overcoming technical challenges in integrating AI tools with existing business systems, data pipelines, or customer-facing platforms, particularly when managing latency, security, or scalability.

Meeting UK Regulatory or Ethical Standards for AI

Engineering AI systems to comply with emerging UK and international guidelines on AI safety, fairness, and accountability, particularly where these require technical innovation or validation.

If your business is actively developing or improving AI and machine learning technologies, and overcoming technical challenges in the process, you could be eligible for R&D tax relief. This incentive helps UK companies recover part of their innovation costs, supporting further investment in AI-driven solutions that deliver measurable value.

Our Process

What to expect when working with
BC&A Innovation

1. Discovery Call

Book your FREE 15 minute discovery call today to discuss your R&D activity and we'll guide you on best next steps and estimated claim value.

2. Information gathering

Our technical experts and industry specialists will work with you to uncover all areas of work activity eligible under the R&D scheme, ensuring we have everything we need to support a robust, defensible and maximised claim.

3. Create R&D Tax Claim

Our technical experts will write your claim and supporting documents with a clear assessment of your eligible activity and costs, ensuring compliance with the scheme's governance throughout.

4. Approval & Submission

We'll share, for your approval, the claim draft and supporting documentation. We'll explain in detail how we have arrived at our assessment of your claimable activity, costs and claim value. When you're happy, your claim can be submitted as part of your standard end-of-year processes.

5. Liaising with HMRC

Should HMRC require any further information or have queries regarding your claim, we'll liaise with them to ensure speedy payment without any reduction in claim value.

6. Payment

Once your payment is received, we'll send it across the same working day and advise you on processes that can be put in place to make future claims even more hassle-free. Don't worry about claims going forward, we'll be in regular contact to remind you what is needed and when.

About BC&A Innovation

We've helped hundreds of businesses like yours secure millions in Research & Development tax relief

Our team recognises the importance of R&D in advancing UK businesses, big and small, and we understand the time burden, resources and complexities of claiming tax relief for that R&D. These constraints often leave companies failing to get the tax relief they’re entitled to or underclaiming significantly due to unclear, often confusing guidelines about what constitutes R&D. As experts in R&D tax relief, we’re here to unblur the lines and create robust, defensible and maximised claims on your behalf.

We’re experienced tax professionals, accountants and technical experts with a deep understanding of the R&D tax relief regulations. We’ve worked in many of the industries we now serve and are ideally placed to understand your business’ R&D Activities. As part of HMRC’s panel on R&D, we stay up-to-date with the latest developments in the guidance, to provide our clients with the most accurate and up-to-date advice.

At BC&A Innovation we take the burden of claim generation away from the business so you can do what you do best, while we do what we do best. We pride ourselves on our integrity, professionalism and commitment to our clients.

Not sure if you qualify for R&D tax relief? Book a FREE discovery call today.

Many of the businesses we work with were unsure if they qualified for R&D tax relief at first. A few had even been told by other agencies that they could not claim. Yet, with our help they were able to correctly identify eligible R&D projects and claim back vital funds.

As experts in HMRC’s definitions of Research & Development, we’ll be able to tell you if you should make a claim or not. We’re success fee based, which means it isn’t in our interest or yours to take forward claims that won’t pass HMRC’s stringent checks. If we say it’s worth doing, you can take that to the bank.

Ready for a discovery call? Think of it as a no-obligation chat where we can discuss the work you’ve undertaken and identify tax-saving opportunities. Our expert consultants are keen to speak with you.