Accessing Government Support, Tax Reliefs, and Grants for SMEs: What’s Available and How to Use It

A practical guide for business owners and directors

Running a small business means making smart choices with time and money. The good news is that the UK offers a range of targeted reliefs, grants and finance options designed to improve cash flow, support investment and help you grow. The challenge is knowing what’s relevant to your business, and how to claim it efficiently.

As seasoned advisers to owner‑managed businesses and growing SMEs, we’ve distilled the landscape into the practical steps that matter now. If you’re planning investment, hiring, product development or a digital upgrade, this guide shows where support can reduce cost and risk, and how our team at Halliday Styan Chartered Accountants can help you capture it.

1. Understanding What Types of Support Are Available

Financial support for SMEs broadly falls into three categories:

a) Grants and direct funding

Grants are sums of money offered for specific purposes, often linked to innovation, sustainability, job creation or regional development. They are typically non-repayable if the terms are met, which makes them extremely valuable, but also competitive. Common types of grants include:

• Innovation and technology grants

• Energy efficiency and sustainability funding

• Support for hiring, training, and apprenticeships

• Regional growth or job-creation funds 

Grant programmes change regularly as government priorities evolve, so it’s important to check for current opportunities (we can help monitor these).

b) Tax reliefs for businesses

Tax reliefs reduce your corporate or personal tax bill when you meet certain criteria. Many SMEs don’t realise how much tax they could legally save simply by applying the rules correctly. Common tax reliefs include:

• Annual Investment Allowance (AIA) – provides full tax relief on qualifying plant and equipment.

• Research & Development (R&D) tax relief – for companies developing new or improved products, processes or systems.

• Creative industry reliefs – for specific sectors such as gaming, TV or film production.

• Capital allowances on energy‑efficient equipment – encouraging low‑carbon investment.

• Reliefs available to property-owning businesses, such as structures and buildings allowances. 

Correctly identifying what qualifies, and ensuring your claims are robust, is where professional support is vital.

c) Loans and government‑backed finance schemes 

These are not grants but can make borrowing more accessible and affordable. Examples include:

• Government‑guaranteed loans through accredited lenders

• Start‑up loans with mentoring included

• Regional development funding

• Export support for businesses entering new markets

These schemes often include favourable terms, fixed interest rates, or additional advisory support.

2. Funding and reliefs that many SMEs miss

From working closely with SMEs, we regularly see opportunities that business owners are unaware of. Below are some of the most overlooked.

a) Investment tax reliefs (including SEIS/EIS

If you are raising funds from private investors, government‑backed investor reliefs, such as the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS), can make investment into your business significantly more attractive. Investors receive generous personal tax reliefs, making it easier for early‑stage companies to secure funding.

Many small businesses hesitate to explore investment because they assume it’s only for high‑growth tech companies. SEIS/EIS applies across a wide range of sectors. 

b) Research & Development (R&D) tax relief

R&D relief isn’t only for labs or tech businesses. If your company is solving technical problems, improving processes, developing prototypes, or creating more efficient systems, you might qualify, even if the project didn’t succeed.

We find that many SMEs simply don’t realise that their routine, problem‑solving work could meet the definition of R&D for tax purposes.

c) Grants for digital adoption and skills

From digital transformation to cybersecurity upgrades, there are often regional and national schemes aimed at helping SMEs improve technology and skills. These can cover:

• Software purchases

• Online trading improvements

• Digital audits

• Specialist training for your staff

With the business landscape becoming increasingly digital, these schemes can be extremely valuable.

3. How to choose the right type of support

With so many options, it’s important to consider what will genuinely support your business goals. Ask yourself:

• Is the funding linked to a specific project? If yes, a grant or innovation scheme may be appropriate.

• Do you need cash flow support or growth finance? Government‑backed loans or investor reliefs may be more suitable.

• Are you spending money on equipment, software, or improvements? Tax reliefs are likely available.

• Are you improving processes or solving technical challenges? You may qualify for R&D tax relief.

At Halliday Styan, we help clients assess which schemes align with their strategy, their financial position and the growth stage of their business.

4. How to apply (and improve your chances of success)

a) Start with clear documentation

Grant providers and tax authorities expect clarity. Good records, invoices, project descriptions, timelines and financial data, make a dramatic difference.

b) Understand the eligibility criteria fully 

Many applications fail because businesses assume they meet the requirements without checking the details. 

c) Prepare a strong business case 

For grants, this often includes:

• What problem you are solving

• How you will use the funds

• Economic, environmental or social benefits

d) Be realistic with timelines and budgets

Over‑optimistic forecasting is a common reason for rejection.

e) Work with advisers

Professional support increases success rates, ensures applications are accurate, and helps you take advantage of opportunities you may have missed.

As part of our service offering, we can assist with:

• Management accounts and financial forecasting

• Tax relief optimisation

• Preparing financial information for applications

• Reviewing eligibility and identifying the right opportunities

5. Top Tips for Taking Action

 Here are some practical steps you can take immediately:

a) Review your recent and planned investments - Whether you’re buying equipment, upgrading systems or hiring staff, there may be tax reliefs you can claim. 

b) Map out any “problem‑solving” or innovation projects - If your team is developing, improving or experimenting with processes, you may be undertaking R&D without realising. 

c) Keep your financial information up to date - Well‑prepared bookkeeping and management accounts make applications significantly easier and increase your credibility when applying for funding. This is where our general accountancy, bookkeeping and management accounts services support clients most directly. 

d) Don’t rely on a single source of funding - Combine grants, tax reliefs and investment incentives to strengthen your financial position.

e) Check for regional funds - Local growth hubs, enterprise partnerships and councils often have additional schemes available.

f) Seek tailored advice - Because the landscape changes frequently, expert guidance ensures you stay current and compliant.

6. How Halliday Styan Chartered Accountants can help

Many small businesses don’t claim what they are entitled to simply because the landscape feels overwhelming. Our role is to break down complexity and help you make informed decisions that support your goals.

At Halliday Styan Chartered Accountants, we work closely with SMEs, owner-managed businesses and start-ups to help them:

• Identify eligible grants and relief

• Prepare strong applications

• Optimise tax efficiency

• Maintain clear financial records

• Strengthen cash flow and strategic planning 

We also provide friendly, professional bookkeeping and management accounts, giving you clarity and confidence when approaching lenders, investors or grant providers.

If you think your business might benefit from funding, grants or tax reliefs, or you simply want help understanding what you may be eligible for, our team is here to help. 

We can offer tailored advice, walk you through your options, and support you with the financial information needed for successful applications. If you’d like support or want to discuss how these schemes might apply to your business, please feel free to get in touch with us.