Research and Development Tax Credits Statistics: September 2025

The latest HMRC R&D Tax Credit Statistics (Published 30^th September 2025) show a sharp fall in the number of companies claiming, but only a small reduction in the overall cost to the government. 

Key findings from 2023–24 

• Total R&D tax relief claimed: £7.6 billion – down just 2% year on year.
• Number of claims: around 46,950 – a steep fall of 26% compared with the previous year.
• Qualifying R&D expenditure: £46.1 billion – almost unchanged (down 1%).

In other words, the Government has saved very little, but there are now far fewer businesses making claims. 

Why the shift? 

The drop in claim numbers is largely explained by changes for periods beginning on or after 1st April 2023: 

• SME scheme support was cut back, reducing the benefit for smaller companies.
• RDEC (the scheme for larger companies) became more generous.
• A new “R&D intensive SME” route was added for firms spending 40%+ of costs on R&D.
• Corporation Tax rose to 25%, also influencing calculations.

This means: 

• Smaller claims – typically from start-ups and SMEs – have fallen away.
• Larger claims (often under RDEC) now make up a bigger share, increasing the average claim value.

The report confirms a sharp reduction in first-time R&D tax credit claims: 

• 2022–23 tax year: overall first-time applicants fell by 41% vs the previous year.
• SME scheme: 7,230 first-time claimants (a 45% drop).
• RDEC scheme: 2,000 first-time claimants (a 21% drop).

This marks the fourth consecutive year of decline in new entrants to the scheme.

 Sector and regional picture 

• Manufacturing, Information & Communication, and Professional, Scientific & Technical sectors account for nearly three-quarters of all claims.
• London, South East and East of England remain the leading regions, reflecting the concentration of R&D activity.

What this means for businesses 

Despite the headlines, the overall pool of relief remains substantial. HMRC paid out almost the same amount as the previous year, but with fewer companies benefiting. 

For innovative businesses, this creates two key takeaways: 

Opportunity for larger claims – if you are investing significantly in R&D, relief is still highly valuable and in some cases more generous than before.

Risk for smaller claims – SMEs making modest claims may find the process less rewarding, and HMRC scrutiny is higher than ever.

Our advice 

If you are investing in R&D, the message is clear: do not assume the changes mean relief is out of reach. Instead, ensure your claim is carefully prepared, fully compliant, and in line with the current rules. 

Get in touch with our specialist R&D team today to review your position and explore how much you could claim under the new rules.