R&D Tax Relief Calculator
Calculate the merged R&D Expenditure Credit (20% above the line, ~15% net) or the enhanced ERIS route for loss-making R&D-intensive SMEs (up to 26.97%).
Data verified · July 2026
How much is the merged R&D credit worth?
20% of qualifying expenditure, taxable: net 15% at the 25% main rate, up to 16.2% at the 19% small profits rate.
Source: GOV.UK — Corporation Tax R&D relief (gov.uk/guidance/corporation-tax-research-and-development-rd-relief); claiming R&D tax reliefs (merged scheme). · updated 2026
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Everything about R&D Tax Relief Calculator
📋Overview+
Computes UK R&D relief for accounting periods from April 2024: the merged RDEC scheme pays a taxable above-the-line credit of 20% of qualifying R&D spend (net benefit 15% at the 25% CT rate, 16.2% at 19%), while loss-making SMEs whose R&D is at least 30% of total expenditure qualify for ERIS — an 86% enhanced deduction with a 14.5% payable credit, worth up to 26.97p per £1.
💡 Best practices
- Payable credits are capped at £20,000 plus 300% of the company's PAYE/NIC bill — heavily subcontracted R&D can hit the cap.
- Qualifying costs include staff, externally provided workers, software, data licences, cloud computing and consumables.
- Claims need an Additional Information Form and, for first-time claimants, advance notification within 6 months of the period end.
🔢 Concrete example
Profitable company spending £100,000 on qualifying R&D at the 25% CT rate: gross credit £20,000, tax on the credit £5,000 — net benefit £15,000 (15%). A loss-making SME at 40% intensity would instead receive £26,970 via ERIS.
📖User guide+
How to use this calculator
- 1
Enter qualifying R&D expenditure (staff, software, consumables, subcontractors).
- 2
Set your marginal corporation tax rate.
- 3
For loss-making SMEs, add total expenditure to test the 30% intensity threshold.
- 4
Read the scheme applied, the gross credit and the net benefit.
📚Glossary+
- Merged RDEC
- The single scheme since April 2024: a 20% taxable credit booked above the line — visible in operating profit, then taxed at your CT rate.
- ERIS
- Enhanced R&D Intensive Support for loss-making SMEs spending ≥30% of total costs on R&D: 186% deduction and a 14.5% payable cash credit.
ℹ️Sources & updates+
Last data update
July 5, 2026
Sources and references
GOV.UK — Corporation Tax R&D relief (gov.uk/guidance/corporation-tax-research-and-development-rd-relief); claiming R&D tax reliefs (merged scheme).
The data in this calculator is updated regularly to reflect the latest official rates. When in doubt, consult the official sources listed above.
FAQ — R&D Tax Relief Calculator
How much is the merged R&D credit worth?+
20% of qualifying expenditure, taxable: net 15% at the 25% main rate, up to 16.2% at the 19% small profits rate.
Who qualifies for ERIS?+
Loss-making SMEs whose qualifying R&D is at least 30% of total expenditure: 186% enhanced deduction and a 14.5% payable credit — up to 26.97p per £1 of R&D spend.
What costs qualify as R&D?+
Projects seeking an advance in science or technology: staff costs, externally provided workers, subcontracted R&D (with restrictions), software, data and cloud costs, consumables and prototypes.