One of the most rewarding aspects of working in R&D tax relief is seeing first-hand how innovative businesses are tackling real-world challenges. Through our Giving Back initiative, we support selected early-stage businesses by providing free advice to help them do their first R&D tax relief claim under the UK Research & Development Expenditure Credit (RDEC) scheme.
In the latest interview in our Giving Back series, Richard Malczyk, an RandDTax consultant, spoke with Louise Thomas, Co-Founder and CEO of Air Aware Labs, about the company's innovation journey and how an R&D tax relief claim has supported its continued growth.
Air pollution remains one of the world's most significant environmental risks to health. While most people have access to city-wide air quality information, this rarely reflects the conditions they personally experience throughout the day.
Air Aware Labs was founded to solve this problem.
The company has developed sophisticated technology that combines environmental science, artificial intelligence and advanced software engineering to model air pollution at a hyper-local level. Rather than providing broad regional forecasts, its technology predicts pollution street-by-street, hour-by-hour, before translating this information into an individual's likely exposure based on their location, movement and activity.
The result is highly personalised guidance that helps users make informed decisions to reduce their exposure and better protect their health.
Behind the user-friendly app lies significant advances achieve through undertaking R&D.
Louise explained that one of the company's key innovations has been developing algorithms capable of combining:
Hyper-local air pollution models.
Real-time GPS location data.
Inferred activity and movement patterns.
Individual physiological factors that influence pollutant exposure.
One particularly challenging area of development has been creating dynamic low-pollution route optimisation.
While static maps showing lower pollution routes already exist, Air Aware Labs wanted to go much further by creating a system capable of analysing changing pollution levels in real time and recommending alternative routes that could immediately reduce a person's exposure.
These types of scientific and technological uncertainties are exactly the sort of activities that may qualify for relief under the UK's R&D tax relief scheme.
Like many first-time claimants, Louise initially considered preparing the R&D claim internally.
However, she quickly recognised that preparing a robust claim involves much more than simply describing innovative work.
Determining which activities qualify, identifying eligible expenditure, presenting technical uncertainties clearly, and understanding areas such as R&D intensity all require careful judgement.
By working with experienced advisers, Air Aware Labs was able to prepare a well-supported claim that accurately reflected its qualifying R&D activities.
The claim resulted in an R&D tax relief payment from HMRC within a few months and was processed without enquiry.
Beyond the immediate financial benefit, Louise highlighted another important outcome: the process helped establish stronger internal systems for future claims.
Capture staff time spent on eligible projects.
Distinguish qualifying work from routine commercial activity.
Build stronger evidence to support future claims.
These improvements should make future submissions more efficient while strengthening compliance.
Like many technology startups, Air Aware Labs has relied primarily on investment funding during its early growth.
The R&D tax relief claim has provided an additional source of funding that extends the company's runway and supports further investment in research and development.
As Louise explained, the company isn't undertaking R&D to generate tax relief. Instead, the relief recognises and supports the substantial investment already being made into developing innovative technology that delivers wider societal benefits.
That is precisely what the UK's RDEC tax relief scheme is designed to achieve.
When asked whether she would recommend our services, Louise's answer was simple: she already has.
Having experienced the process first-hand, she has recommended R&D Tax to other startup founders looking to understand whether their own innovation could qualify for support.
For us, that's one of the most meaningful endorsements we can receive.
Innovative businesses often underestimate both the complexity of preparing a compliant R&D tax relief claim and the value of specialist guidance.
Air Aware Labs demonstrates how companies developing genuinely novel technologies can not only secure valuable financial support through the RDEC scheme, but also establish stronger internal processes that benefit future claims.
For businesses investing heavily in solving scientific or technological challenges, taking the time to identify qualifying activities and document them properly can make a significant difference to both the success of a claim and future innovation.
Have you considered whether your latest R&D projects could qualify for relief under the RDEC scheme?