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ForrestBrown, the UK’s specialist R&D tax consultancy, managing director Sara Brigden has commented on the HMRC analysis and improvement (R&D) September 2025 tax credit statistics.
Current figures indicated a slight downturn within the quantity of R&D tax aid claimed within the UK for the tax yr 2023 to 2024.
The provisional estimate of £7.6bn ($10.2bn) represents a 2% lower from the prior yr, with R&D expenditure additionally falling by 1% to £46.1bn ($62.03bn).
These figures are the primary to replicate the impression of changes to the aid charges for each the smal, medium enterprise (SME) and R&D expenditure credit score (RDEC) schemes, in addition to the introduction of the SME intensive fee and the requirement for a further data type to help all claims.
The SME scheme noticed a 29% discount in tax aid claims, right down to £3.15bn, whereas the RDEC scheme skilled a 36% enhance to £4.41bn.
Moreover, the general variety of R&D tax credit score claims additionally diminished, with a 26% year-on-year lower to 46,950.
The SME scheme was notably affected, with a 31% discount in claims, whereas the RDEC scheme noticed a extra modest 5% drop.
Brigden has voiced issues over the discouraging impact these modifications could have on smaller companies contemplating investing in innovation.
She famous a forty five% fall in first-time claims from SMEs, attributing this to the decrease aid charges and the extra demanding administrative necessities, which might act as a deterrent.
Bigger companies have seen a profit from the elevated share of the aid at 47%, whereas the variety of RDEC claims has additionally decreased, however to a lesser extent, Brigden said.
She identified that the elevated RDEC fee has made it extra possible for bigger firms to undertake tasks with the next diploma of economic certainty.
Brigden mentioned: “Whereas current reforms have had a welcome impression on decreasing error and fraud, we might warning in opposition to any additional modifications that danger undermining R&D funding. Doing so might detract from the core – and constructive – objective of the inducement: to drive personal sector innovation.”
Previous to this, HMRC earmarked £2.4bn for tax reliefs and expenditure credit for the inventive industries for the fiscal yr ending 31 March 2024, as reported by RSM UK primarily based on the newest statistics.
“ForrestBrown MD discusses HMRC R&D tax credit score statistics ” was initially created and revealed by The Accountant, a GlobalData owned model.
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