On 30 September 2025, HMRC released its latest Research and Development (R&D) Tax Credits Statistics — presenting a snapshot of how UK businesses are engaging with innovation incentives, and how the market is evolving.
For employers and professionals working in R&D tax, the data tells a story not just of fiscal trends, but of shifting demand for expertise across the industry.
📉 A changing landscape for R&D claims
HMRC’s provisional figures for the 2023/24 tax year show that the total R&D tax relief claimed fell by 2% to £7.6 billion, with R&D expenditure down 1% to £46.1 billion.
The SME scheme has seen the sharpest decline — down 29% to £3.15 billion — while claims under the RDEC (Research and Development Expenditure Credit) scheme rose 36% to £4.41 billion.
Overall, there were 46,950 claims — 26% fewer than last year. HMRC attributes much of this reduction to recent changes in SME enhancement and credit rates, which have altered the incentives landscape for smaller businesses.
⚙️ The shift from SME to RDEC — and the talent implications
This data highlights a clear transition: larger businesses, already familiar with the RDEC framework, are now claiming a greater share of relief.
For employers, that means demand is growing for professionals with deep knowledge of RDEC mechanics, compliance processes, and audit readiness — particularly in large accountancy practices and corporates.
Meanwhile, SME specialists may find their expertise increasingly valuable in navigating the new merged RDEC/ERIS regime, which applies from April 2024. The ability to interpret and apply new guidance quickly will be a key differentiator for advisors in the next 12 months.
💡 What this means for employers and candidates
For Employers
- Expect heightened competition for senior consultants and managers with RDEC experience.
- The market may see a redistribution of talent — with SME-focused advisors upskilling or transitioning to corporate R&D teams.
- Firms that invest early in training and retention will be best positioned to meet client demand when the merged scheme fully takes effect.
For Candidates
- Specialists who can bridge SME and RDEC knowledge will be in high demand as the new regime settles.
- Professionals with a mix of technical tax, technology, and project management skills will stand out.
- Staying current with legislative and policy updates — and demonstrating that expertise to employers — will be key to career progression.
🚀 Looking Ahead
While the 2023/24 data reflects a short-term contraction, the introduction of the merged RDEC and enhanced R&D intensive support (ERIS) from April 2024 marks the start of a new chapter.
As the market adjusts, businesses will need the right people — R&D tax specialists who can navigate change, interpret complex legislation, and advise clients with confidence.
In short, the data may show a dip in claims, but for those working in R&D tax, demand for top talent is only set to rise.
