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Ultimate Guide to R&D Loans & Tax Credits in the UK 2025

Trying to get your head around R&D Loans and how your business can be suitable for them?

We’ve broken down this service below for you.

Common R&D Tax Relief Questions Explained –

Industry-Specific R&D Loan Applications:

What Are R&D Loans and Tax Credits?

R&D (Research and Development) tax credits and R&D loans are financial tools that help innovative UK companies unlock funding for product development, process improvement, and scientific advancement.

R&D Tax Credits: A government incentive that allows businesses to reclaim a portion of their qualifying R&D expenditure as a tax reduction or cash payment.
R&D Loans: A short-term funding option that allows you to borrow against a pending or projected R&D tax credit while waiting for HMRC to process your claim.

Case Study Example: £90,000 Advanced in Under a Week

A growing tech startup filed for a £120,000 R&D tax credit.

Rather than waiting for HMRC, they secured a £90,000 advance from Buzz Capital within 5 days.

They used the funding to hire key developers, accelerate product delivery, and close a major customer deal.

The loan is then fully repaid once HMRC has paid out the full credit.

R&D Tax Relief - What Are the Benefits for UK Businesses?

Both SMEs and large enterprises across the UK benefit from R&D tax relief and associated funding.

For SMEs:

Receive up to 33% of eligible R&D costs back
Turn innovation into working capital
Secure up to 80% of your expected refund early with an R&D loan

Learn more about SME R&D Tax Credits

For Large Companies (RDEC scheme):

Claim 13% of qualifying expenditure through RDEC
Improve financial planning and reduce tax liability

Read about the RDEC Scheme

Do I Need Certain Eligibility and Qualifying Activities for R&D Tax Relief?

Your business may be eligible for R&D tax relief and loan funding if it:

Is registered and operates in the UK
Has spent money developing new products, services, or processes
Faces technical or scientific uncertainty
Keeps detailed records of the R&D process and expenditures

Typical qualifying activities include:

Software or hardware development
Engineering or manufacturing innovation
Scientific research or lab work

Learn more: Eligibility Criteria for R&D Loans in the UK

Frequently Asked Questions

R&D stands for “Research and Development”. A business undertaking research and development activities are essentially seeking to innovate, improve or introduce new products and services.

Whilst it is a prerequisite that the outcome of such activities should be uncertain and carry a significant degree of risk, the ultimate goal for a business is often to improve performance to ensure future competitiveness and growth.

A research and development tax credit is a cash payment provided by HMRC to eligible companies. Companies include their claim for an R&D tax credit when they file their accounts and submit their CT600 to HMRC at the end of their financial year. R&D tax incentives are intended to reward qualifying UK companies that are investing in innovation.

Days. Whilst a number of factors can influence the process, we aim to have the funds in your business account within a matter of days.

Research & Development Tax Credits now require companies to complete an Additional Information Form (AIF) before submitting their CT600. This is required regardless of the claim date. Without this completed form, HMRC will reject the claim. It is therefore important for businesses to allow adequate time to complete the form.

R&D tax reliefs have been set up by the Government to support companies that work on innovative projects in science and technology.

Under this SME scheme, it is possible for a range of companies, regardless of the industry, to claim tax credits for research and development. There is even the possibility of claiming relief for unsuccessful or loss-making research and development projects.

Once you have filed your CT600 tax return at the end of the financial year, HMRC aims to pay a tax credit within 28 days, but in reality this has proven in recent times to take much longer. If you want access to the funds right away, Buzz Capital can provide you with a quick R&D advance so you can cut out the financial waiting game.

Once we have a clear idea of how much your R&D Tax Credit is worth, we can advance you up to 80% as a cash payment directly into your bank account. You can then use the advanced cash to help your business grow; whatever way that may be.

How do I Apply for R&D Loans and Claim Tax Credits?

Step 1: Prepare Your R&D Claim

Work with a specialist or accountant to prepare a strong claim
Gather documentation of costs, objectives, and outcomes

Step 2: Submit to HMRC

File as part of your CT600 company tax return

Step 3: Apply for an R&D Loan

If you need the cash sooner, apply for an R&D loan with Buzz Capital
Receive funding in as little as 48 hours

Is an R&D Loan Right for Your Business?

How Buzz Capital Puts the Client First

Ok, I'm Ready to Unlock Our R&D Funding, What's My Next Step?

Whether you’re preparing your first R&D tax credit claim or want to accelerate your funding with a loan, Buzz Capital is here to help.