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Every UK business funding route, in one place.

There are 5.6 million UK SMEs (BEIS 2024) and most of them claim less than half the government funding they qualify for. This is the calm, plain-English guide to the ten biggest routes: Start Up Loan, R&D Tax Credits, Innovate UK, Employment Allowance, AIA, Patent Box, Help to Grow, Local Growth Hub vouchers, Government Contracts and apprenticeship incentives.

5.6MUK SMEs (BEIS 2024)
£14.4bnGov contracts to SMEs 2023/24
£4.4bnR&D Tax Credits paid 2022/23 (HMRC)
£25,000Max Start Up Loan
Loans & equity

Capital you can apply for

Start Up Loan Up to £25k @ 6% APR

Personal loan from the British Business Bank for businesses less than 3 years old. Free mentoring included. Average loan size around £15k. Repayable over 1-5 years. You're personally liable.

Apply: startuploans.co.uk

Innovate UK Grants £25k – multi-million

Sector-specific grant competitions for UK businesses doing genuinely innovative work. Single-firm and consortium calls run year-round. Highly competitive; ~10% success rate but no equity given up.

Browse: iuk.ktn-uk.org/competitions

SEIS & EIS Up to 50% investor relief

Tax reliefs for investors backing your company. SEIS (Seed Enterprise Investment Scheme) gives investors 50% income tax relief on up to £200k. EIS gives 30% relief on up to £1M. Makes it much easier to raise from angels.

HMRC: gov.uk SEIS/EIS

Tax reliefs

Money you keep in tax

Employment Allowance £5,000/yr

Reduces your employer's Class 1 NI bill by up to £5,000 a year. Eligible if employer NI bill was under £100k in the previous tax year. Claim via your payroll software with one tick box.

HMRC: gov.uk/claim-employment-allowance

Annual Investment Allowance (AIA) 100% on £1M/yr

You can write off the full cost of qualifying plant, machinery, equipment, vans and IT against profits in the year you buy them — up to £1 million spend per year. Saves Corporation Tax at 19-25%.

HMRC: gov.uk Annual Investment Allowance

R&D Tax Credits 20-27% above-the-line

From April 2024 most SMEs moved to a single merged R&D scheme (RDEC) paying 20% above-the-line. Loss-making R&D-intensive SMEs (R&D > 30% of total spend) can claim the Enhanced Intensive Support (ERIS) at up to 27%. Average claim £55k.

HMRC: gov.uk R&D relief

Patent Box 10% Corp Tax

Drop your Corporation Tax rate to 10% on profits attributable to qualifying UK or European patents (vs the standard 25% rate). Massive for patent-holding companies. Requires careful streaming calculation — use a specialist accountant.

HMRC: gov.uk Patent Box

Creative Industries Tax Reliefs Up to 53.5% claim back

Film, high-end TV, animation, video games, theatre, orchestral and museum/gallery exhibitions production. Calculated as a payable cash credit. Has saved UK creative companies billions over a decade.

HMRC: gov.uk Creative Tax Reliefs

Customers & contracts

Where to find UK government contracts

Contracts Finder £12k+ contracts

Free portal listing UK central government contracts over £12,000 and most council/NHS contracts. Set keyword alerts for your sector. UK SMEs won £14.4 billion of public sector contracts in 2023/24.

Portal: contractsfinder.service.gov.uk

Find a Tender High-value contracts

UK replacement for the EU OJEU. Lists higher-value contracts above £138,760 (services/supplies) or £5,372,609 (works). Use this if you can deliver larger tenders.

Portal: find-tender.service.gov.uk

Crown Commercial Service Frameworks Pre-approved supplier lists

Get on a CCS framework once and become eligible for hundreds of public sector buyers without re-tendering. Examples: Digital Outcomes, G-Cloud (cloud services), Management Consultancy Marketplace.

Apply: crowncommercial.gov.uk

Training & people

Skills and apprenticeship funding

Help to Grow: Management 90% subsidised

UK government-subsidised 12-week MBA-style course delivered by top UK business schools. SMEs pay just £750 (government pays the rest). Includes 1-2-1 mentoring. Roughly 10,000 SME leaders have completed it.

Apply: helptogrow.campaign.gov.uk

Apprenticeship Levy & incentives £1,000 per apprentice

£1,000 incentive payment when you hire an apprentice aged 16-18 (or 19-25 with an EHC plan / care leaver). Non-levy employers (under £3M annual wage bill) get 95% of training paid by the government, you pay 5%.

HMRC: gov.uk/take-on-an-apprentice

Skills Bootcamps Free for employer-led training

Government-funded 12-16 week courses in digital, technical and green skills. Free for adults; employers contribute (10% for SMEs, 30% large) when used to upskill existing staff.

Browse: gov.uk Skills Bootcamps

Local Growth Hub vouchers £1k – £5k typical

38 Local Growth Hubs across England offer free business advice plus funded vouchers for consultancy, training, productivity improvements and digital adoption. Schemes vary by region; check your hub.

Find yours: lepnetwork.net Local Growth Hubs

Caution — R&D claims companies

HMRC has cracked down hard on inflated and false R&D Tax Credit claims. Many "no win, no fee" R&D firms have been linked to penalties. Use a chartered accountant who specialises in R&D, not a contingent-fee claims company. False claims can trigger backdated penalties of 30-100% of the claim plus interest.

UK business funding — common questions

What UK business funding can I apply for?

Ten major routes: Start Up Loan up to £25,000 at 6% APR, R&D Tax Credits (RDEC 20%, ERIS 27% for R&D-intensive SMEs), Innovate UK grant competitions, Employment Allowance £5,000 off employer NI, Annual Investment Allowance 100% deduction on £1 million plant/machinery, Patent Box 10% Corp Tax on patent profits, Help to Grow Management 90% subsidised training, Local Growth Hub vouchers, Contracts Finder/Find a Tender for government contracts, and £1,000 apprenticeship incentive payments.

Who can apply for a UK Start Up Loan?

You can apply if you are over 18, live in the UK, and your business is less than 3 years old (or you have a business plan). Loans are personal up to £25,000 at 6% APR fixed, repayable over 1 to 5 years. Free mentoring included. Apply at startuploans.co.uk (British Business Bank).

What is the UK R&D Tax Credit worth in 2025?

From April 2024 most SMEs moved to the merged R&D scheme (RDEC) paying 20% above-the-line. Loss-making R&D-intensive SMEs (R&D > 30% of total spend) can claim ERIS at up to 27%. Average claim is around £55,000. HMRC paid £4.4 billion in R&D Tax Credits in 2022/23.

What is the Employment Allowance?

Employment Allowance lets eligible UK employers reduce employer's Class 1 NI bill by up to £5,000 a year (2025/26). You can claim if your employer NI bill was under £100,000 in the previous tax year. Apply via payroll software or HMRC Basic PAYE Tools.

How do I find UK government contracts as an SME?

Contracts Finder lists central government contracts worth over £12,000 and most council/NHS contracts. Find a Tender lists higher-value contracts (£138,760+ services, £5.4M+ works). UK SMEs were awarded £14.4 billion in government contracts in 2023/24.

Sources Start Up Loans · British Business Bank. R&D Tax Credits 2022/23 statistics · HMRC. UK SME contract spend 2023/24 · Cabinet Office. Business Population Estimates 2024 · BEIS. Last reviewed: May 2026.

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