Analysis

May 13, 2025

UK startups strain under R&D tax credit crackdown

Founders say they’ve been unfairly targeted by clawbacks and face massive financial losses


Some UK startups say they face a 'devastating' situation. Credit: Unsplash/HMRC

UK startups are being unfairly targeted by government efforts to recover research and development (R&D) tax credits handed out in error, industry leaders say, with some facing massive financial losses as a result of the clawbacks. 

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Kai Nicol-Schwarz

Kai Nicol-Schwarz was a senior reporter at Sifted. He covered AI and UK tech.

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