R&D tax credit estimator
The schemes merged and the rates changed in 2024. Estimate your claim under the current rules in seconds: the merged scheme at roughly 15–16%, or ERIS for R&D-intensive SMEs at around 27%.
An estimate based on current HMRC rules, not tax advice. Your actual claim depends on your accounts and which costs qualify — an R&D adviser or accountant can confirm.
What qualifies
- Staff costs — gross salary, employer NIC and pension for people doing or directly supporting the R&D
- Externally provided workers (agency staff) — UK-based
- Subcontracted / contracted-out R&D — UK-based (the 65% restriction applies under ERIS and the legacy SME rules; the merged scheme uses different contractor rules)
- Consumables — materials, water, fuel and power used up in the R&D
- Software, and data & cloud-computing costs used in the R&D
- Clinical trial volunteer payments
- Overseas subcontractors and externally provided workers (restricted since April 2024, narrow exceptions only)
- Rent, rates and general office overheads
- Capital equipment (claimed via capital allowances instead)
- Production, distribution and marketing of the final product
- Patent and trademark costs, and the cost of land
Questions founders ask
How much R&D tax credit can I claim?+
Under the merged scheme (accounting periods from 1 April 2024) you get a 20% above-the-line credit, worth about 15% of qualifying spend if you're profitable (25% tax) and 16.2% if you're loss-making or pay the 19% small-profits rate. Loss-making R&D-intensive SMEs can instead claim ERIS, worth around 27%.
What is ERIS and do I qualify?+
Enhanced R&D Intensive Support (ERIS) is for loss-making SMEs that spend at least 30% of their total expenditure on qualifying R&D. It gives an 86% enhanced deduction and a 14.5% payable credit — a net benefit of roughly 27% of qualifying R&D spend, the most generous rate available.
What costs qualify for R&D tax relief?+
Staff costs (salary, employer NIC, pension), UK externally provided workers, UK subcontracted R&D, consumables used up in the R&D, and software, data and cloud costs. Since April 2024, most overseas subcontractor and worker costs no longer qualify.
Did the R&D rules change?+
Yes. From 1 April 2024 the old SME and RDEC schemes merged into a single 20% above-the-line scheme, the R&D-intensity threshold for ERIS dropped from 40% to 30%, and relief for overseas subcontractors and externally provided workers was restricted to UK-based work.
Is this estimate guaranteed?+
No — it's an estimate based on current HMRC rules. Your actual claim depends on your accounts, which costs qualify, and meeting the PAYE/NIC cap. An R&D adviser or accountant can confirm and prepare the claim.
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