by Sam Swansborough
Business Tax Director
7 October 2025
Articleby Sam Swansborough
Business Tax Director
The latest HMRC statistics on R&D tax credits, published in September 2025, confirm what many in the innovation community have felt over the past year: the landscape for claiming R&D tax relief has fundamentally changed.
The numbers reflect a system under intense scrutiny, with a marked reduction in the value of relief available paired with a significant increase in the administrative burden for claimants. However, while headline claim volumes have fallen, the average claim value has risen markedly, and well-prepared, evidence-rich claims continue to be recognised.
A year of clampdowns and change
HMRC’s clampdown on fraud and errors, is now unmistakably visible in the data. The total number of R&D tax credit claims for 2023–24 fell by a staggering 26% compared to the previous year, with claims under the SME scheme dropping by 31%.
This sharp decline follows a series of reforms designed to tackle non-compliance, including the introduction of the mandatory Additional Information Form (AIF) for all claims and a reduction in the SME enhancement and credit rates.
The statistics also show that the value of relief claimed through the SME scheme has plummeted by 29%, while the RDEC scheme (typically used by larger companies) saw a 36% increase in claims value.
The overall support claimed across both schemes dropped, only slightly by 2%, but this masks the dramatic fall in the number of smaller claims, especially those under £15,000, while the average claim value interestingly rose by 33%.
More bureaucracy, less certainty
The impact of the new compliance regime is clear - every R&D tax relief claim must now be accompanied by an Additional Information Form, and HMRC has expanded its compliance workforce dramatically since 2020, with more than 500 specialists now dedicated to reviewing R&D submissions.
The result? More claims are being checked, more are being challenged, and the process is more complex than ever. Legitimate businesses are finding the bar for evidence and documentation has been raised significantly, and even routine claims can face lengthy delays or detailed enquiries.
A new normal for R&D tax relief
The latest HMRC stats confirm that the R&D tax relief regime is now tougher, less generous, and more complex than ever before. These statistics cover 2023/24 and do not reflect the merged R&D regime. The impact from those changes will first appear in HMRC’s 2026 publication.
For SMEs, the reduction in the enhancement rate (from 130% to 86%) has made R&D tax relief less generous than at any point in the last decade. While the RDEC scheme has become more attractive for some, the overall message is clear: the days of easy, high-value claims are over.
For innovative businesses, the opportunity is still there, but so are the risks. Now, more than ever, expert advice is the key to unlocking the value of R&D tax relief and staying on the right side of HMRC.
Why using an adviser matters more than ever
With HMRC’s focus on compliance, the risk of making a mistake, or simply failing to meet the new documentation standards, has never been higher. However, while the process is more exacting, this shift is designed to ensure that genuine innovation is rewarded and that businesses who invest in quality claims can continue to access valuable support.
Sam Swansborough, Business Tax Director at James Cowper Kreston, commented: “The latest figures show that the regime is evolving, meaning claims are more targeted at R&D that will boost growth. This environment encourages businesses to take a more strategic approach, ensuring that their innovation activities are properly documented and their claims are fully optimised.
Over the past 12 months, we have seen that rather than viewing compliance as a barrier, forward-thinking companies are using this as an opportunity to strengthen their processes, demonstrate the real impact of their R&D, and maximise the value of their claims.”
Working with a specialist adviser is no longer just a “nice to have” but a key driver of success, helping you to:
Now, more than ever, expert advice is the key to unlocking the value of R&D tax relief and staying on the right side of HMRC. We’re on hand to help businesses navigate this evolving landscape and secure the funding and incentives that unlock real value. Click here to speak to a member of our R&D Tax Relief team, so that we can help maximise your potential.
Click here to read HMRC’s Research and Development Tax Credits Statistics - September 2025.