Stability in the UK R&D scheme brings positivity for the tech sector

The most recent change, an aim to simplify the scheme, was to introduce the New RDEC that would broadly apply to all businesses looking to claim, alongside a more generous relief specifically for loss-making, small businesses where 30%+ of their total expenditure relates to qualifying R&D.

There are no further changes currently projected, and this is positive for a number of reasons:

1. Encourages long-term R&D projects, investment, and improves planning

Tech innovation often involves multi-year projects (e.g., AI development, new hardware, platform scaling). Stable R&D incentives allow businesses of all sizes to budget and commit to long-term R&D projects and sustained R&D investment, as it allows companies to plan their R&D spend with greater confidence in the projected level of return.

2. Builds investor confidence and international competitiveness

When the R&D scheme is stable, investors feel more secure backing long-term innovation strategies in the UK versus jurisdictions where incentives shift unpredictably.

3. Helps smaller innovators navigate the system

Ending frequent legislative tweaks gives smaller startups and SMEs a fixed set of rules to work with, lowering the barrier to participation over time.

Our specialist team of Chartered Tax Advisors and Chartered Accountants, alongside our technical team encompassing Engineers, Software Specialists, and an ex-HMRC inspector, can assist businesses with preparing robust, compliant R&D tax relief claims.

Would you like to know more?

If you would like to discuss the above matter, please get in touch with your usual Blick Rothenberg contact, or Ele Theochari using the form below.