R&D Tax Relief: What the latest figures mean for your business

The government’s latest Research & Development (R&D) tax credit statistics for 2024-25 reveal a continuing decline in claims, with total claim numbers dropping 26% and the value of tax support decreasing slightly to £7.6 billion.

Most concerning is a 31% fall in SME scheme claims, particularly among smaller claimants, despite qualifying expenditure remained relatively stable at £46.1 billion.

A sharp 59% reduction in new claimants signals growing caution around the scheme, likely driven by HMRC’s stricter compliance measures and recent rate changes.

However, businesses should not be deterred. R&D tax relief remains one of the UK’s most valuable corporate tax incentives, even after recent reforms.

Geography matters: London and the South East continue to dominate, accounting for 51% of total claim values despite representing only 39% of claims, this shows have valuable claims in these regions are.

The sectors seeing the most activity remain Information & Communication, Manufacturing and Professional Scientific & Technical industries, which together represent 72% of all claims. However, emerging sectoral shifts suggest opportunities in other industries.

How we can help

Do not assume that your business is ineligible. The drop in smaller claims suggests many businesses are self-selecting out of the scheme unnecessarily. Even modest R&D activities may qualify under the current rules.

Review your innovation activities with our experienced advisers to ensure you’re not leaving valuable relief on the table. With fewer claims being submitted, compliant claimants face less competition for HMRC resources and potentially faster processing times.

If you would like to find out how we can help you, please do not hesitate to get in touch with a member of our team.