Unpacking the 2026 Research and Development Tax Credits Statistics – How has the value changed since the Merged Scheme started

With the latest iteration of HMRC’s Research and Development Tax Credits Statistics now released, it is possible for accountants, innovative businesses and R&D tax consultants to understand the current state of R&D tax reliefs.

The Merged Scheme for R&D tax reliefs has been in effect for long enough that the latest R&D statistics now reveal how its early implementation reformed the sector and the statistics chart the rates at which claims are made and their value.

As such, it is worth reviewing the statistics to determine the ways in which the Merged Scheme changed the value of R&D tax relief claims.

How many R&D tax relief claims are being made?

The R&D statistics primarily examine the 2024/25 tax year, the first in which the Merged Scheme was the primary route for accessing R&D tax relief claims.

This time still saw most claims using the old schemes, as the statistics run until 31 March and not 5 April, so only businesses with a March year-end would have made use of the Merged Scheme.

It is surprising that 6,480 claims, 17 per cent of the total for the year, made use of the Merged Scheme, revealing how popular a March year-end is for businesses.

In total, an estimated 40,325 R&D tax relief claims were submitted, a decrease of 17 per cent.

Despite the drop in the number of R&D tax relief claims submitted, the total value of tax relief claims increased by five per cent.

This means that £8.2 billion was obtained by innovative businesses that would otherwise have been missed.

The increase in value of R&D tax relief claims broadly correlates with an increase in the amount spent on R&D, as expenditure was up by seven per cent.

While the big spenders certainly benefitted the most from R&D tax relief claims, the average value of a claim increased by 27 per cent.

However, there was a significant drop in the number of SMEs engaging with R&D tax relief claims, as there were 19 per cent fewer claims from SMEs while there was a four per cent increase in claims made by large companies.

What do the R&D statistics mean for the future of R&D tax reliefs?

The clearest message that is communicated through these statistics is the sheer value that R&D tax relief claims hold.

Each year sees a drop in the number of claims being made, fuelled by the crackdown on compliance that gave rise to an increase in enquiries.

Those who no longer feel confident in making a successful R&D tax relief claim are more likely to stay away, rather than taking a chance and hoping for the best.

Despite the drop in claims, the value of R&D tax reliefs continues to rise, indicating that higher quality research projects are getting the investment they need.

The greater value from R&D tax relief claims might help to solidify the position of the scheme as it will be demonstrably positive for the innovation of the UK.

However, the decline in SME claims and the rise of large companies could be concerning if the trend persists.

R&D tax relief claims were even-handed in their applicability, providing a boost in funds for small and large innovators alike.

If SMEs drift away from the scheme en masse, there is a risk that R&D tax relief claims will be viewed as a benefit exclusively held by big businesses.

Accountants could work to engage more with SME clients to highlight the value of R&D tax relief claims, helping to demonstrate the value that comes from a valid claim.

Working with an R&D tax consultant can make this simpler, as this can ensure that qualifying expenditure is fully captured, further enhancing the benefit.

Our expert team work to support accountants and innovative businesses in making the most of R&D tax relief claims and defending valid claims in the event of enquiry.

We would like to see more SMEs make the most of R&D tax relief claims, so that they can continue pushing for new advances.

To fully utilise the true value of R&D tax relief claims, speak to our team today!

Adam Bointon

Adam Bointon is a Technical Director specialising in R&D Tax Credits for SMEs in manufacturing and software sectors. With over 15 years’ experience, he works closely with businesses to identify qualifying R&D activities and prepare clear, compliant claims. He combines technical expertise with a strong understanding of economics and finance to support successful outcomes. Adam also contributes to industry webinars and CPD sessions, sharing insights on R&D tax relief and HMRC requirements.