R and D Tax

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R and D Tax We have helped over 1,600 companies throughout the UK gain in excess of £220 m R&D Tax credits

If your company makes innovative use of science or technology to develop or significantly enhance products, services or business processes, you may be entitled to claim research & development tax credits to help offset some of the costs of your investment.

Why are fewer businesses claiming R&D tax relief?HMRC’s latest figures show that claim numbers have more than halved sin...
14/10/2026

Why are fewer businesses claiming R&D tax relief?

HMRC’s latest figures show that claim numbers have more than halved since 2020/21. Over the same period, relief claimed by SMEs fell by 21.9%, while large company relief increased by 104.7%.

Our latest blog explores what might explain this shift, from changing relief rates and stricter compliance to notification deadlines and financial pressure on smaller businesses.

Christopher Toms, our Compliance Director, also shares his concerns about whether SMEs and large companies face consistent treatment from HMRC.

Read the blog:
https://www.randdtax.co.uk/rd-tax-relief-statistics-2026-why-are-fewer-businesses-claiming/

If your business needs help with an R&D claim or HMRC enquiry, please get in touch.

There are two rather different stories in HMRC’s latest R&D tax relief statistics. The headline is that the total value of relief claimed has risen to £8.2 billion. Look beneath it, however, and the number of claims has more than halved since 2020/21, while the support claimed by SMEs has fallen ...

HMRC has launched a new targeted Advance Assurance pilot for R&D tax relief claims, giving SMEs the opportunity to seek ...
21/05/2026

HMRC has launched a new targeted Advance Assurance pilot for R&D tax relief claims, giving SMEs the opportunity to seek early clarity on specific technical areas before submitting a claim.

The pilot includes some of the most contentious areas of the regime, including contracted out R&D, overseas expenditure and PAYE cap exemptions. That alone says a great deal about where HMRC sees ongoing compliance risk.

The update also comes alongside further amendments to the Additional Information Form and new guidance at CIRD161000 on pre-contract activity.

Taken together, these developments continue the trend towards greater scrutiny, more structured disclosures and increased pre-claim compliance activity within the R&D regime.

For businesses and advisers operating in complex areas of R&D tax relief, technical analysis and robust evidence remain critical.



HMRC has announced the launch of a new targeted Advance Assurance pilot for R&D tax relief claims, beginning on 18 May 2026 and running for an initial 12 month period. The announcement was circulated to members of the R&D Communication Forum and represents another significant development in HMRC’s...

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