24 Nov 2017

How will the Budget affect R&D Tax Credits?

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…

  • If you’re working on an advance in technology
  • If there is an element of uncertainty in your project
  • If you are developing a new process
    …no matter the sector you’re in, then you could be eligible to claim R&D Tax Credits.

​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.

Related Articles

01 Oct 2026

HMRC R&D Tax Relief Statistics 2024-25: What They Mean for SMEs

The latest HMRC R&D tax relief statistics reveal a significant decline in SME claims, despite overall R&D expenditure and the value of relief claimed continuing to rise. We take a closer look at the key figures, what could be driving fewer SMEs to claim, and why large companies are receiving a growing share of the overall benefit.

R&D Tax Credits
Bulb
13 May 2026

HMRC CT600L Update Creates Challenges for R&D Tax Claims

Recent changes to HMRC’s CT600L form are already creating challenges for businesses submitting R&D tax credit claims under the merged RDEC scheme. With some software providers yet to implement the updates required for the new reporting, companies may face delays and missed deadlines. We take a look at what's changed, and the steps businesses can take to ensure their claims are not impacted.

R&D Tax Credits
Bulb

An independent consultancy, highly skilled and experienced

Assists organisations in accessing research and development grant funding across a range of UK and EU schemes and industry sectors.

Get In Touch
3 young professionals