The 2025 HMRC R&D statistics reveal a 26% fall in claim volumes alongside stable qualifying expenditure exceeding £46 billion. The data highlight a maturing innovation landscape, where fewer but more defensible claims are emerging in response to increased compliance scrutiny and evolving legislative reforms. Concentration remains highest across manufacturing, professional, scientific and technical services, and information and communication, underscoring the sectors driving sustained R&D investment in the UK.

The introduction of the Merged R&D Scheme marks one of the most significant structural shifts to the UK’s innovation incentive framework in over a decade. Designed to simplify administration and align compliance standards, the reform merges the SME and RDEC regimes into a single expenditure credit system. Effective for accounting periods beginning on or after 1 April 2024, this article explores the key features of the new scheme, including the 20% credit rate, revised subcontracting and overseas rules, transitional implications, and how businesses should adapt their claim strategies to remain both compliant and optimised under the new framework.

Under recent reforms, companies new to claiming R&D tax relief, or returning after a gap, must now notify HMRC of their intention to claim within six months of the period end. This article outlines the new pre-notification process, who it applies to, the exemptions, and the pitfalls to avoid. With claim validity now hinging on strict procedural compliance, understanding the timing, scope, and practical implications of this rule is essential for ensuring your claim remains fully protected.