Chapter 4: Unlocking Cash You’re Already Earning via R&D
- Admin
- May 19
- 2 min read
Updated: May 20
Chapter 4 of Operations That Scale
If you’re a purpose-driven startup building technology or delivering services in new ways, there’s a good chance you’re eligible for R&D tax credits. It may be you haven’t unlocked this opportunity yet, maybe because it feels too complex, too niche or too risky.
We’ve seen startups leave tens of thousands in non-dilutive funding on the table simply because they didn’t know where to start or assumed they were “too early.”
At Compact, we help startups unlock this cash in a way that’s rigorous, ethical and low-effort. Read below to understand our guide to R&D tax credits.
Problem: R&D claims are underutilised
Most technology startups qualify, but the opportunity is often not exploited.
You either:
Pay a percentage of your claim to a specialist firm that has not spent time understanding your business, or
Get your accountant to “have a go” and end up with a borderline submission, or
Avoid it until your cash gets tight and it becomes a last-minute job
In parallel, your team’s R&D activities are long forgotten and spread across multiple tools and people.
What good looks like: R&D as a rhythm, not a rush
A good R&D process is quiet, continuous and integrated into how your team already works.
Build a minimum viable R&D workflow:
Tag activity in real time. Use simple systems (e.g. “#R&D” in commits, Notion pages or Jira tickets).
Create a light-touch time tracking habit. Founders and key team members should try and log R&D time monthly, not retroactively.
Identify claimable costs proactively. This can include things like dev time, prototyping, early product experiments or technical exploration.
With this process in place, it becomes easy to prepare a short, clean narrative. You don’t need 20 pages, just clear and defensible.
Our view: this is money you’ve already earned
Purpose-driven startups shouldn’t struggle to access funding that’s built for innovation. R&D tax credits can be used as a strategic lever for sustainable growth.
We help you:
Identify where your R&D spend is already happening
Tag and track activity without adding process overhead
Automate evidence collection with tools like Slack, Notion and timesheets
Partner with experienced, ethical R&D tax advisors when you’re ready
You stay in total control while we help guide you to unlocking the value you’ve already earned.
Mistakes to avoid
Starting at year-end with no documentation
Outsourcing too early to someone who doesn’t understand your tech
Over-claiming by stretching definitions—only to get flagged later
Treating the claim as a “finance-only” job, rather than a cross-team process
Want help to build R&D processes?
We can help you build claim-worthy R&D tracking processes that you can run in under 30 minutes a month.
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