HMRC release 2025 R&D tax relief claim statistics

Last week, HMRC has released the latest 2025 Research & Development (R&D) Tax Relief Statistics for the 2023-24 tax year.

It’s no real surprise to see that the number of claims being submitted has dropped again, particularly in the SME regime with a 29% reduction compared to 2022-23, following the reforms made to the scheme, which has reduced the amount of relief available, increased reporting requirements and notably the impact of HMRC’s compliance activity and scrutiny of claims.

Whilst the total number of claims for SME relief, R&D intensity and RDEC in total dropped by26%, it was the SME scheme that felt the biggest reduction in the number of claimants, with 36,885 claims made and a total of £3.15 billion in relief claimed, with RDEC claims at £4.41 billion.

The table below breaks this down with comparisons from previous years;

Number of R&D Tax Credit claims by financial year.

Table shows the years 2019/20 to 2023/24

• There is a larger drop in the number of claims for up to £15,000 of tax relief, compared to larger claims (above £250,000), which consequently resulted in a 33% increase in the average size claim.
  
  
• This reduction in smaller claims may well be down the increased reporting requirements v effort needed and the reward, to make a viable claim. HMRC is still considering whether to reintroduce a minimum R&D spend threshold, which was part of the scheme until 2012.
  
  
• Regional analysis shows companies with registered offices in London accounting for 31% of the total amount claims, with the Southeast second on 20%. Yorkshire and Humber was 7^th on the list at 10% and East Midlands 8^th at 9% (out of the 12 regions).
  
  
• The Information and Communication, Manufacturing, and Professional, Scientific & Technical sectors account for 72% of total claims.

Although claims have reduced and it’s predicted that there will be a further drop when the 2024-25 stats are released next year, R&D reliefs are still a valuable tax relief and companies shouldn’t be put off claiming if they are genuinely undertaking R&D activities.

Unsure whether your projects qualify?

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Our new AI-guided questionnaire is a user-friendly and efficient way to determine your eligibility. It requires no more than 10-15 minutes of your time to complete and can offer some much-needed clarity.

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If you would like to try it, please reach out to the Radius team via the Contact Us form and submit your:

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Our R&D specialists will arrange for the questionnaire to be sent to you, and once the completed form is received back, assess the results and follow up with you. This eligibility checker is a tool few other accountancies have at their disposal, and has saved our clients countless hours from investigating claims. Our Radius team can also assist with any other queries you might have about a new or existing claim.

The Radius team at Shorts will be happy to assist you and help you to quickly determine whether or not your projects will qualify for R&D tax relief claims.