UK R&D Tax Credits — The Complete Guide for Small Software and Tech Companies (2026)
R&D Tax Credits allow UK companies to deduct 186% of qualifying R&D expenditure from taxable profits (SME scheme), or claim a 20% above-the-line credit (RDEC for large companies or SME RDEC for loss-making companies).
R&D Tax Credits allow UK companies to deduct 186% of qualifying R&D expenditure from taxable profits (SME scheme), or claim a 20% above-the-line credit (RDEC for large companies or SME RDEC for loss-making companies). Qualifying activities: resolving scientific or technological uncertainty. Qualifying costs: staffing, software, cloud computing, contractor costs. Post-August 2023 changes significantly reduced SME rates. This article covers what still qualifies and how to claim correctly in 2026.
This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.