R&D Tax Credit Calculator
Estimate the R&D tax relief a company could claim under the merged scheme, or the ERIS rate if it is loss-making and R&D-intensive.
R&D Tax Credit Calculator
Estimate the R&D tax relief a company could claim under the merged scheme, or the ERIS rate if it is loss-making and R&D-intensive.
Staff costs, subcontractors, consumables and software directly attributable to qualifying R&D activity.
Estimates only, for periods beginning on or after 1 April 2024 under the merged R&D scheme. The credit is taxable, so the net cash benefit is roughly 15% to 16.2% of qualifying spend depending on your CT rate band. Figures are estimates, confirm with a specialist before submitting a claim.
How R&D tax credits work under the merged scheme
Since accounting periods beginning on or after 1 April 2024, most companies claim R&D relief through a single merged scheme rather than the old separate SME and RDEC rules. The merged scheme gives an above-the-line credit worth 20% of qualifying R&D expenditure. That credit is itself taxable, so the cash benefit you actually keep depends on your Corporation Tax rate, roughly 15% of spend at the 25% main rate and up to about 16.2% at the 19% small-profits rate.
A loss-making company that is also R&D-intensive, meaning qualifying R&D spend is 30% or more of total expenditure, can instead claim under Enhanced R&D Intensive Support (ERIS). ERIS uplifts qualifying spend by 86% and pays out 14.5% of the resulting surrenderable loss as a cash credit, worth up to around 27% of the original spend. Unlike the merged scheme credit, the ERIS payment is not reduced by Corporation Tax, which is why it is significantly more generous for qualifying loss-making SMEs.
Qualifying expenditure covers staff costs, subcontractor and externally provided worker costs (subject to restrictions), consumables, software and some data and cloud computing costs, where the work resolves genuine scientific or technological uncertainty as set out in the DSIT/BIS Guidelines. Every claim must also be supported by an Additional Information Form submitted to HMRC before the CT600L return.
The rules on qualifying activity, subcontractor restrictions, connected-party rules and the intensity test are detailed, and getting them wrong risks an HMRC enquiry. This calculator gives a rough estimate only; a specialist R&D adviser will confirm what actually qualifies and prepare the claim.
Frequently asked questions
How is the R&D credit calculated under the merged scheme?
The credit is 20% of qualifying R&D expenditure, paid above the line and taxed as income. After Corporation Tax, the net cash benefit works out at roughly 15% of spend at the 25% main rate, up to about 16.2% at the 19% small-profits rate.
What is ERIS and do I qualify?
Enhanced R&D Intensive Support (ERIS) is a more generous rate for loss-making SMEs whose qualifying R&D spend is 30% or more of total expenditure. It uplifts qualifying spend by 86% and pays 14.5% of the resulting loss as cash, worth up to around 27% of the original spend.
Is this the SME or RDEC scheme now?
Neither, on its own. For accounting periods beginning on or after 1 April 2024, the old separate SME and RDEC schemes were replaced by a single merged scheme, with ERIS as a targeted top-up for loss-making, R&D-intensive SMEs.
What counts as qualifying R&D spend?
Staff costs, subcontractor and externally provided worker costs (subject to restrictions), consumables, software, and some data and cloud computing costs, where they relate directly to work resolving a genuine scientific or technological uncertainty.
Do I need the Additional Information Form?
Yes. HMRC requires an Additional Information Form to be submitted before your Corporation Tax return for every R&D claim, setting out the qualifying projects and costs. A claim submitted without one will be rejected.
How accurate is this estimate?
It is a rough guide only, based on the headline merged-scheme and ERIS rates applied to your qualifying spend. It does not check subcontractor restrictions, connected-party rules or whether your activity actually qualifies. A specialist review confirms the real figure before you claim.
Want to be sure of your position?
A calculator gives you the shape of the answer. We confirm your exact figure and the reliefs that apply to you. Tell us about your situation for a no-obligation review.