IP Audits for SMEs in the UK: A Government-Backed Boost for Innovation

Discover how a government-funded IP audit can help UK SMEs protect assets, reduce risks, and unlock growth.

Intellectual Property (IP) can be among the most valuable assets a business owns—yet many UK SMEs either underutilise or overlook it entirely. Recognising this gap, the UK government, through the Intellectual Property Office (UK IPO), has reaffirmed its commitment to funding IP audits for innovative, high-growth SMEs. For businesses navigating expansion, innovation, or investment, this support presents both a strategic advantage and a significant financial saving.

The UK IPO’s IP Audit Plus programme provides up to £2,250 (incl. VAT) in funding toward a professional IP audit, with the participating SME contributing just £750. These audits are conducted by registered IP professionals – typically patent or trade mark attorneys – who deliver a bespoke review of the company’s intellectual property, including registered and unregistered assets, trade secrets, and strategic risks.

Eligibility is managed via recognised innovation and growth partners such as Innovate UK EDGE, Scottish Enterprise, and Welsh Government Business Wales.

According to Dehns, this structured, co-funded approach helps ensure that early-stage businesses understand how to protect, manage, and commercialise their IP portfolio effectively.

What’s New for 2025/26?

After reviewing the pilot of its broader IP Advance programme, the UK IPO has opted to continue focusing specifically on the IP Audit component in its 2025/26 offering. This refined approach ensures that resources go directly toward identifying IP opportunities and vulnerabilities in participating SMEs.

The Chartered Institute of Patent Attorneys (CIPA) confirmed that the audit funding remains at £2,250 (inclusive of VAT), alongside a follow-up meeting and a bespoke written report. The programme aims to give businesses a clear roadmap for protecting their innovations and brand assets in the UK and beyond.

Beyond the Audit: IP Access Funding

As noted by Mewburn Ellis, SMEs that complete an IP Audit may also become eligible for IP Access (Tier 2) funding. This scheme offers additional matched funding of up to £2,250 to implement the audit’s recommendations – ranging from trade mark filings to contract reviews or licensing frameworks.

Similarly, Myerson highlights that these tiers are designed to help growing businesses move from reactive to proactive IP management.

Why IP Audits Matter for SMEs

For startups and scale-ups, IP audits are more than a tick-box exercise. They help businesses:

• Identify what IP they already own (often unknowingly)
• Pinpoint gaps in protection – such as unregistered logos or unpatented technology
• Mitigate infringement risk and avoid costly legal disputes
• Strengthen investor confidence and company valuations
• Prepare for licensing, franchising, or international expansion

As Berry Smith recently reported, many SMEs overlook intangible assets until they’re copied or contested. An audit brings those risks into focus early, offering time to act.

Who Is It For?

This scheme is ideal for:

• Startups developing innovative products or services
• Creative businesses (fashion, design, software, media) needing brand protection
• Tech companies exploring R&D and product licensing
• Businesses preparing for funding rounds or partnerships

To participate, an SME must be referred by an authorised partner organisation. Once approved, they choose an accredited IP professional to carry out the audit.

Why This Matters

With increasing pressure on SMEs to differentiate in competitive markets, protecting what makes them unique is essential. From trade marks and logos to confidential algorithms and design rights, these assets require tailored strategies – especially as businesses scale or look to export.

The 2025/26 IP audit scheme offers a rare opportunity for UK SMEs to access high-level IP support at a heavily subsidised rate. Taking part now could help businesses avoid disputes, maximise innovation returns, and position themselves for long-term success.

Final Thought

Government-backed IP audits are one of the most accessible and impactful ways for small businesses to gain clarity and control over their intangible assets. For SMEs and startups, this is not just an offer of funding – it’s a strategic advantage.Briffa Legal has extensive experience guiding startups and growing businesses through the IP audit process and beyond. From securing trade marks to enforcing IP rights, Briffa helps clients protect what matters most.