How to claim R&D tax credits as a tech startup
Discover how to claim R&D tax credits for your tech startup. Learn eligibility requirements, the step-by-step process, and how Lazo helps you document, file, and maximize your claim — stress-free.
Research and Development (R&D) tax credits can offer much-needed cash flow relief for tech startups investing in innovation. 💡 Yet, many founders miss out simply because they don’t know how to qualify or document their work properly.
In this article, we break down how to claim R&D tax credits and make the most of them for your startup 🚀
What Are R&D Tax Credits?
Governments use R&D tax credits to incentivize innovation by helping companies offset the cost of developing new or improved products, software, or processes ⚙️.
These credits reduce your tax liability dollar-for-dollar 💵, and in some cases, they’re even refundable — meaning you can receive money back, even without tax owed.
Are You Eligible? Key Criteria for Tech Startups
You might qualify if your company is:
🧑💻 Developing new software, algorithms, or hardware
🔧 Improving existing technologies or systems
🧪 Experimenting with prototypes or running product tests
🗂️ Documenting hypotheses, trials, and technical challenges
💬 If you’re investing in innovation but unsure whether you qualify, Lazo’s tax experts can help. We specialize in R&D credits for startups and can guide you through identifying eligible activities and maximizing your claim
How to Claim R&D Tax Credits (Step-by-Step)
✅ Identify eligible activities
Work with your team to list all R&D-related projects and tasks.
📚 Gather documentation
Collect time logs, technical notes, project plans, contractor invoices, and material receipts.
🧮 Calculate qualifying expenses
Include wages, supplies, and payments to contractors engaged in R&D.
📨 File your claim
Submit the necessary forms along with detailed documentation. Many startups choose to work with experts to ensure accuracy and compliance.
Common Mistakes to Avoid
- Poor or incomplete documentation 🗃️
- Missing indirect R&D-related costs 🧾
- Filing late or in the wrong tax jurisdiction 🕓
How Lazo Supports Your R&D Claims
Our tax experts specialize in helping startups:
- 🔍 Identify eligible R&D activities
- 📑 Organize the right documentation
- 🕐 File your claims accurately and on time
We make sure you capture every dollar you’re entitled to, without the stress.
💸 Don’t leave money on the table.
Book your free consultation with Lazo’s tax experts and start maximizing your tax credit today.
