Design and Creativity Archives

Design and creative businesses are at the forefront of innovation, constantly pushing the boundaries of technology to develop new solutions, enhance existing products, and drive creative progress. Organisations such as the Design Council continue to highlight how design-led innovation contributes to business growth across the UK. However, many of these companies may not be aware that they are eligible for significant tax relief under the UK’s Research and Development (R&D) tax credits scheme. At Apex Accountants, we specialise in helping designers and creative businesses navigate the complexities of R&D tax relief. With over 20 years of experience, we offer tailored advice to ensure that you fully benefit from the R&D tax credits for creative businesses. Our team understands the unique challenges creative firms face and dedicates itself to helping you optimise your claims.

This guide helps you maximise eligibility for relief in 2026, despite major R&D scheme updates in 2024. We explain how creative firms qualify for R&D tax credits. Learn about applicable activities, costs, and practical ways to achieve greater tax savings for design and creative projects.

What qualifies for R&D tax relief?

Your firm must undertake work that seeks a scientific or technological advance and involves uncertainty that competent professionals cannot easily resolve.
For design and creative firms, that means:

Developing new digital design tools or bespoke software to drive creative workflows.
Testing novel materials, processes or techniques in a way that goes beyond standard professional practice.
Prototyping solutions where outcomes are uncertain and require technological experimentation.

Pure aesthetic design, artistry, social science or marketing concepts alone do not qualify.

Key changes from 1 April 2024 – the merged R&D scheme

From accounting periods beginning on or after 1 April 2024, the prior SME and RDEC schemes are replaced by the new merged R&D scheme for most companies.

Key features for design and creative firms:

A standard tax credit of 20% of qualifying R&D expenditure under the merged scheme.
For loss‑making, R&D‑intensive SMEs (those with at least 30% of total spend on qualifying R&D for periods from 1 April 2024), there is a separate “ERIS” route: an additional relief deduction of 86% on qualifying costs and a payable credit of 14.5% of the surrenderable loss.
Overseas subcontracted R&D and use of externally provided workers (EPWs) outside the UK face significant new restrictions from 1 April 2024.

What costs can you claim?

Eligible costs include:

Staff salaries and employer NIC contributions for those directly engaged in R&D tasks.
Consumables and materials used up in R&D.
Software and cloud costs used exclusively for R&D (cloud and data licences included for periods from April 2023).
Subcontractor payments where R&D is contracted out within the UK and the claimant controls the R&D decision‑making.

Design firms should keep detailed time records, project logs and allocation of costs to specific R&D activities.

How design & creative firms can optimise claims

To ensure your firm receives the full benefit of R&D tax relief for design companies, follow these tips:

Identify each project that developed novel design tools, new materials or bespoke software.
Record the technical or technological uncertainty and explain what you did that professional designers could not easily work out.
Ensure subcontracted or outsourced work is managed correctly using UK-based subcontractors with defined R&D tasks.
Review your accounting period: if you begin your period before 1 April 2024, you may still use older schemes. If your accounting period begins after 1 April 2024, use the merged scheme.
Liaise early with your advisers to decide whether the ERIS route applies (if you are an R&D‑intensive SME).
Prepare the necessary disclosures by submitting any required claim notification and filing the Additional Information Form (AIF) with your tax return for accounts ending after 1 August 2023

How Apex Accountants Supports R&D Tax Credits for Creative Businesses

At Apex Accountants, we specialise in helping design and creative businesses claim R&D tax relief for design companies. Our team guides you through every step, from identifying qualifying activities to compiling necessary documentation. With 20+ years of experience, we offer expert advice to ensure your claims are accurate and compliant with HMRC requirements.

We guide you through every step of the process, from mapping your costs to qualifying R&D activities to managing subcontractor issues. We aim to provide a robust claim, backed by thorough documentation that can withstand any scrutiny from HMRC.

Design and creative firms are well-positioned to benefit from R&D tax relief if they are engaged in genuine scientific or technological advancement. With the merged scheme starting from 1 April 2024 and stricter rules, especially regarding overseas work, early planning is essential.

Contact us today to learn how we can help you benefit from tax savings for design and creative projects and support your innovation investments.

Product design start‑ups in the UK often face difficulties securing the funding they need to grow. In 2026, the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) offer valuable opportunities, with significant tax relief to attract equity investment. However, the complex application processes and strict eligibility criteria can make navigating these schemes difficult. That’s where Apex Accountants steps in. With nearly two decades of experience, we specialise in helping you access EIS and SEIS for product design start-ups, ensuring you meet all requirements and fully capitalise on these funding opportunities for growth.

Understanding EIS and SEIS for Product Design Start-Ups in 2026

The investment landscape for start‑ups is changing, with SEIS and EIS continuing to play a key role in raising capital for early‑stage businesses, including product design start‑ups.

In 2023–2024, 2,290 companies raised £242 million through SEIS, marking a 51% increase from the previous year. This underscores SEIS as a vital funding source for early-stage ventures. Although EIS funding dropped to £1.575 billion in 2023–2024, it remains an essential funding stream for more established product design businesses. SEIS and EIS offer several benefits to product design start‑ups:

These schemes incentivise investors by offering tax reliefs, making your business more appealing.
Investors can claim tax reliefs of 50% for SEIS and 30% for EIS, which can significantly reduce their investment risk.
Being eligible for SEIS/EIS signals credibility to potential investors, as they are often more likely to invest in businesses with government-approved tax relief for product design start-ups.

2026 Strategy for Product Design Start-Ups

As we move into 2026, product design start‑ups must consider the following:

Eligibility for SEIS:

SEIS may be more accessible for early-stage companies. It offers a faster route to funding for businesses with innovative prototypes but little revenue.

Sector Relevance:

Investors often focus on sectors like manufacturing, technology, and R&D, which are key areas for product design start-ups. Apex Accountants offers strategic advice on how to align your business with investor interests, helping you secure funding for your product design start‑up.

Investor Focus:

Tailor your business to align with investor interests and SEIS/EIS criteria. Apex Accountants assists in assessing your business’s eligibility for SEIS/EIS, ensuring you meet all the criteria before you approach investors.

Compliance Risk and Documentation:

Ensure strict adherence to HMRC documentation for product design start-ups. Mistakes in share issuance or compliance statements could result in losing tax relief eligibility. Apex Accountants help prepare and review all necessary documentation, including share certificates and compliance statements, to ensure they meet HMRC’s requirements.

How Can Product Design Companies Apply for SEIS/EIS in 2026?

Product design start‑ups in the UK must meet specific criteria to apply for SEIS or EIS in 2026. SEIS is designed for early-stage companies. To qualify, your business must have fewer than 25 employees, assets of £350,000 or less, and be less than two years old. SEIS is ideal for start‑ups looking for initial investment to develop and launch products.

EIS is for more established companies. To qualify, your business must have assets up to £15 million, fewer than 250 employees, and be within seven years of your first commercial sale. EIS is perfect for product design businesses that need funding to scale.

Key Steps for Applying

Ensure all HMRC documentation for product design start-ups is in order
Use funds for activities like R&D, prototype development, or asset purchases.
Ensure all necessary paperwork is in order, including share certificates and compliance statements.
Meet all submission deadlines to avoid losing eligibility.

Case Study: Apex Accountants guides a Product Design Start-Up to secure SEIS funding

Apex Accountants recently helped a product design start‑up in securing initial funding and managing the financial risk associated with high-interest loans. The start-up had developed an innovative product but lacked the capital to move forward with prototype finalisation and small-scale manufacturing.

We guided them through the process of applying for SEIS, allowing them to raise £300,000 from investors who benefited from 50% tax relief. This funding enabled them to complete their prototype and begin production without taking on costly debt. By leveraging SEIS, they were able to scale their business and focus on growth, free from the financial burden of traditional loans.

Why work with Apex Accountants?

At Apex Accounting, we help product design start-ups navigate the EIS and SEIS schemes, ensuring you meet all eligibility criteria and maximise funding opportunities. Working with Apex Accountants means:

Ensuring your business meets SEIS/EIS criteria to increase funding chances.
Developing tailored financial strategies for growth and scaling.
Handling all necessary documentation to ensure accurate, timely submission.
Maximising available tax relief for product design start-ups.
Assisting with using funds for R&D and prototype development.
Providing ongoing support to stay compliant with HMRC requirements.

Contact Apex Accountants to secure the funding your product design start‑up needs.

Category: Design and Creativity

How Design & Creative Companies Can Benefit from R&D Tax Credits for Creative Businesses