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    R&D Tax Relief Calculator

    Quick estimates and detailed planning for merged scheme and ERIS

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    Estimates only – not tax advice. For planning purposes only; does not replace professional advice or official HMRC calculations. Full disclaimer

    Last reviewed:

    Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact HMRC. Read our editorial scope →

    TaxKiln framework

    R&D Claim Eligibility Stack

    TaxKiln's stacked eligibility test for the merged R&D scheme (post-April 2024) — qualifying-activity scope + competent-professional standard + technological-advance threshold + ENI test for enhanced rate eligibility.

    R&D Expenditure

    £
    £

    Company Profile

    Is your company classified as an SME?

    Is the company loss-making this period?

    Company Financials

    £

    Used to calculate the net benefit after tax on the credit

    From April 2024, most claims use the merged scheme

    £

    For your reference – shows existing losses available

    About R&D Tax Relief

    Merged R&D Scheme: From April 2024, most R&D claims use the merged RDEC-style scheme, providing an effective benefit of approximately 16% of qualifying spend after corporation tax.

    R&D Intensive Support (ERIS): Loss-making, R&D-intensive SMEs (with ≥30% R&D intensity) may qualify for enhanced support worth approximately 27% of qualifying spend.

    R&D Intensity: Calculated as qualifying R&D spend divided by total company expenditure. A ratio of 30% or more qualifies as "intensive" for ERIS purposes.

    Effective Rates: This calculator uses simplified effective rates (16% merged, 27% ERIS) as modelling assumptions to provide quick estimates, not statutory calculations.

    Estimated R&D Benefit

    Merged scheme
    £0

    ~16% of qualifying spend

    R&D Intensity
    0.0%
    Not R&D-intensive

    Regime Comparison

    Merged scheme£0 (~16%)
    R&D-intensive ERIS
    £0 (~27%)

    ERIS not available: profit-making, R&D intensity below 30% (currently 0.0%)

    Corporation Tax Impact

    RegimeApprox BenefitEffective %
    Merged scheme (typical)£0~0%
    R&D-intensive ERIS (n/a)£0~27%

    Merged scheme detail:

    Taxable credit: £0 (20% of spend)

    Less CT on credit: £0

    Net benefit: £0

    Enter your qualifying R&D spend to see an estimate.

    Professional Use Only
    This R&D calculator is for professional use. It uses simplified effective rates to illustrate potential benefits under the merged and R&D-intensive regimes and does not calculate an actual claim. Detailed eligibility, qualifying cost analysis, group position and the choice between payable credits and loss carry-forward must be assessed separately against HMRC guidance.
    Assumptions used in this calculation (click to expand)

    What this calculator assumes

    • Company is UK CT-paying and meets BEIS R&D definition (advance in science/technology with uncertainty).
    • Qualifying expenditure entered is post-deduction of any subsidies / grants treated as State Aid.
    • ERIS eligibility requires SME status, loss-making, and qualifying R&D ≥ 30% of total expenditure.
    • Merged scheme effective ~16% net benefit assumes 25% CT rate; lower CT bands yield lower net benefit.
    • Contractor and EPW restrictions post-April 2024 apply (UK-territoriality) — not separately broken out.

    Not included in this calculation

    • Patent Box election interaction.
    • Going-concern requirement and pre-trading expenditure rules.
    • Subcontractor restrictions (65% on connected, 100% on unconnected outside the EPW route).
    • Additional Information Form (AIF) and pre-notification mechanics.
    • HMRC enquiry / volume compliance check risk.

    Statutory basis

    • CTA 2009 Pt 13 Ch 1A (merged R&D expenditure credit)
    • CTA 2009 Pt 13 Ch 2 (R&D-intensive SME — ERIS)
    • FA 2024 (merged scheme and ERIS threshold change to 30%)
    How this is calculated (click to show the formula)

    R&D benefit estimate

    Merged scheme: Net benefit ≈ Qualifying R&D × ~16% (20% above-the-line credit, taxable at CT rate)
  ERIS (R&D-intensive SME, loss-making): Net benefit ≈ Qualifying R&D × ~27%

    The merged scheme gives an above-the-line 20% expenditure credit, itself subject to CT — so the cash benefit is ~16% at the main CT rate. ERIS is reserved for loss-making SMEs whose R&D is ≥30% of total expenditure.

    Who handles this kind of work

    If you decide you want professional support, the specialisms relevant here are:

    • R&D tax relief claim firms, Firms that prepare R&D tax relief claims under the merged scheme. NOTE: HMRC enforcement is currently aggressive, due-diligence questions matter before engaging.

    We don't name specific firms or platforms here. TaxKiln is editorial reference, not a directory.

    Last reviewed: