Sam Stephens
Director
This week we saw the release of the Chancellor’s Autumn Budget. This is always a nerve wracking time, however the good news is that the R&D Tax Credits schemes are still very generous.
Philip Hammond stated this week that R&D Tax Credits would be increased from 11 to 12 percent under the RDEC scheme.
This is good news, for those claiming under the RDEC scheme for companies with over 500 staff, as well as SME’s who have grant funding.
The RDEC scheme generates a tax saving equivalent to 9.7p for every £1 spent on eligible R&D.
The SME scheme for businesses with under 500 staff remained the same, and still remains very generous.
With an uplift of 230% on eligible R&D, the SME scheme generates a tax saving equivalent to 26p for every £1 of R&D spend!
This is further extended up to 33p in the £1 for loss making SME’s.
What is considered R&D?
There has always been a certain mystery surrounding what is considered to be R&D. A common misconception is that R&D is purely what scientists undertake.
The truth is…
This lack of understanding as to what is considered as R&D is a major hurdle to accessing the scheme as the money companies get can back through the scheme is usually reinvested in future R&D.
If you are interested in claiming R&D Tax Credits for your business, use our online R&D Tax Calculator to work out how much your R&D Tax Relief could be worth.
When it comes to claiming R&D tax relief, many businesses in design-heavy industries often ask the same question: Can we claim for the cost of acquiring designs? While buying existing designs does not qualify for relief, the good news is that further work to modify, develop or improve those designs often does. If your business is undertaking technical design work as part of an innovation project, there may be significant relief available.
From 1 April 2026, all tax advisers, including those involved in R&D tax claims, must be registered with HMRC and meet new minimum standards to act on behalf of clients. This move is part of HMRC’s drive to raise professional standards, reduce fraud, and improve oversight within the tax advisory industry. Learn who will be affected by these changes and what at your business needs to do to stay compliant.
Assists organisations in accessing research and development grant funding across a range of UK and EU schemes and industry sectors.
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