The UK saw a 2% decrease in R&D tax relief claimed in 2023-2024, totaling £7.6bn. SME scheme claims dropped by 29% to £3.15bn, while RDEC scheme claims rose by 36% to £4.41bn. Overall R&D tax credit claims fell by 26% to 46,950. Concerns arise over the impact on small businesses investing in innovation.

First-time SME claims fell by 45% due to lower relief rates and administrative requirements. Larger businesses benefited from increased relief share at 47%. Brigden warns against further changes that could deter R&D investment. Reforms aim to reduce error and fraud but should not undermine private sector innovation incentives.

HMRC allocated £2.4bn for tax reliefs and expenditure credits for creative industries in 2024. ForrestBrown MD commented on the HMRC R&D tax credit statistics, expressing concerns about the impact on innovation investment. The Accountant initially published the discussion.

Read more at Yahoo Finance: ForrestBrown MD discusses HMRC R&D tax credit statistics