Established UK tech companies can fund innovation and scale-up through Innovate UK grants, R&D tax relief on qualifying development, and government-backed finance such as the Growth Guarantee Scheme — plus regional support and tax-advantaged equity routes. Government support for tech isn’t just for startups: trading companies use these to fund continued innovation, working capital and growth. Grants need match funding and interact with R&D relief, so plan them together.
Key takeaways
- Innovate UK grants fund innovative R&D — tech firms are frequent applicants.
- R&D tax relief rewards qualifying software and technology development.
- The Growth Guarantee Scheme supports scaling established tech SMEs.
- Support isn’t just for startups — established firms qualify too.
- Grants require match funding and affect R&D relief — plan together.
- A combination of grants, R&D relief and finance often suits scale-up.
Technology companies are central to the UK’s growth ambitions, and established tech firms — not just startups — can access a strong mix of government support for innovation and scale-up. The challenge is knowing which routes fit, and how grants, tax relief and finance work together. This guide explains the funding available to established UK technology companies and how to use it.
Innovation grants: Innovate UK
Innovate UK, the UK’s national innovation agency, funds innovative R&D projects across sectors, and technology companies are among its most frequent applicants. Funding is competitive, usually requires match funding, and is awarded through competitions assessed against published criteria — covering the innovation, the approach, the team and the commercial potential. For tech firms developing genuinely new products or capabilities, it is a key route to non-repayable funding.
R&D tax relief
R&D tax relief rewards qualifying research and development through the tax system. Software and technology development can qualify where it seeks an advance in science or technology by resolving genuine uncertainty — though routine development does not. The relief can reduce tax or, in some cases, provide a payable credit, lowering the net cost of innovation. Importantly, it interacts with grants: receiving a grant can affect which relief applies and how much you can claim, so plan the two together and take advice.
Grants and R&D tax relief interact. If you take an Innovate UK grant, get advice on how it affects your R&D claim before assuming you can claim both in full.
Government-backed finance for scale-up
For working capital and investment to scale, eligible technology SMEs can access the Growth Guarantee Scheme through accredited lenders — term loans, overdrafts and other facilities, with a government guarantee that improves access. This is particularly useful for established tech businesses that are growing fast but may find conventional lending harder to secure without significant assets to offer as security.
Not just for startups
A common misconception is that government support for tech is aimed only at early-stage firms. In fact, established technology companies can access innovation grants, R&D tax relief and government-backed finance to fund continued innovation, scale-up and investment. With a trading history and track record, established firms are often well placed to win competitive funding and to satisfy lenders’ assessments.
The wider picture: equity routes
Beyond grants and debt, some government-linked routes support equity investment in growing companies, and tax-advantaged investment schemes encourage private investors to back qualifying businesses. These are separate from grants and finance, with their own rules, but they form part of the wider funding picture for ambitious tech companies and are worth considering alongside the other routes.
Putting it together
| Route | Best for |
|---|---|
| Innovate UK grants | Funding innovative R&D projects. |
| R&D tax relief | Rewarding qualifying development. |
| Growth Guarantee Scheme | Working capital and investment to scale. |
| Equity / tax-advantaged schemes | Investment for high-growth ambitions. |
A coordinated approach — grants for innovation, finance for scale-up, and R&D relief on qualifying work — often suits established tech companies best, subject to the rules and how grants affect relief.
How to access it
- Monitor Innovate UK competitions for innovation funding.
- Speak to your accountant about R&D tax relief on qualifying work.
- Approach accredited lenders or a broker for the Growth Guarantee Scheme.
- Use your growth hub and the business support finder for regional support.
- Plan grants, relief and finance together to maximise the benefit.
The bottom line
Established UK technology companies have access to innovation grants, R&D tax relief and government-backed finance to fund innovation and scale-up — and these are not just for startups. The key is to plan the routes together, because grants and R&D relief interact and match funding is usually required. Combine Innovate UK funding, R&D relief and the Growth Guarantee Scheme thoughtfully, and use your growth hub and a broker to build the funding package your tech business needs to grow.
Frequently asked questions
What government funding is available for tech companies?
Established UK technology companies can access innovation grants such as Innovate UK, R&D tax relief, and government-backed finance such as the Growth Guarantee Scheme, alongside regional support. The right mix depends on whether you are innovating, scaling or investing.
Can tech companies get Innovate UK grants?
Yes. Innovate UK funds innovative R&D projects across sectors, and technology companies are frequent applicants. Funding is competitive, usually requires match funding, and is awarded through competitions assessed against published criteria.
Can established tech firms claim R&D tax credits?
Yes, where they undertake qualifying research and development — seeking an advance in science or technology by resolving uncertainty. Software and technology development can qualify, though the work must meet the definition; routine development does not.
Can tech companies use the Growth Guarantee Scheme?
Yes. Eligible technology SMEs can access the Growth Guarantee Scheme through accredited lenders for term loans, overdrafts and other facilities, with a government guarantee that improves access — useful for scaling an established tech business.
Is government funding for tech only for startups?
No. While there is support for early-stage firms, established technology companies can access innovation grants, R&D tax relief and government-backed finance to fund scale-up, continued innovation and investment.
Who is eligible for tech funding?
Eligibility varies by programme. Innovate UK competitions have their own criteria; R&D tax relief depends on qualifying activity; the Growth Guarantee Scheme targets viable trading SMEs. Check each route’s requirements.
Do tech grants require match funding?
Innovate UK competitions typically require match funding, covering part of the project cost. Confirm the contribution required and that you can fund it, possibly with finance, before applying.
What about equity funding for tech companies?
Beyond grants and debt, some government-linked routes support equity investment in growing companies, and tax-advantaged investment schemes encourage private investors. These are separate from grants and finance and have their own rules; consider them as part of the wider picture.
How do R&D tax relief and grants interact for tech firms?
Receiving a grant or other state aid can affect which R&D relief applies and how much you can claim. If you have grant funding, get advice on how it affects your R&D claim, as the interaction matters for technology companies that often use both.
How do I fund scaling an established tech business?
Options include government-backed finance such as the Growth Guarantee Scheme for working capital and investment, innovation grants for R&D, and R&D tax relief to reward qualifying work. A combination often supports scale-up best.
Where do I find tech funding?
Monitor Innovate UK competitions, check your local growth hub and the business support finder, speak to your accountant about R&D tax relief, and approach accredited lenders or a broker for finance.
How long does tech funding take?
Innovate UK competitions run over months; R&D tax relief is claimed via your tax return; finance can be quicker. Plan ahead, especially for grant-funded innovation projects.
Can I combine grants, R&D relief and finance?
Yes, commonly, subject to the rules and how grants affect R&D relief. A coordinated approach — grants for innovation, finance for scale-up, and R&D relief on qualifying work — often suits established tech companies.
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