R&D Tax Credit Calculator
R&D Tax Credit Estimate
Qualifying R&D Expenditure-
RDEC Credit Rate-
Gross Credit-
Net Benefit (after CT)-
Effective Rate of Relief-
R&D Tax Relief Rates 2025/26
| Scheme | Credit Rate | Net Rate (profitable) | Eligibility |
|---|---|---|---|
| Merged RDEC | 20% | 15% (after 25% CT) | All companies |
| ERIS (R&D Intensive) | 27% | 27% (payable) | 40%+ R&D spend ratio |
From April 2024, the SME and RDEC schemes merged into a single above-the-line credit at 20%. R&D-intensive loss-making SMEs can claim the enhanced 27% rate under ERIS.
R&D Tax Credit Key Facts
Merged RDEC Rate
20%
ERIS Rate
27%
CT Rate
25%
Net RDEC Benefit
15%
Subcon Restriction
65%
Claim Window
2 years
How to Use This Calculator
1
Enter staff costs
Input gross salary costs (including employer NI and pension) for staff working on R&D activities.
2
Add subcontractor costs
Enter payments to subcontractors for R&D work. Note only 65% of subcontractor costs qualify.
3
Add consumables and software
Include materials consumed in R&D and software licence costs used for R&D activities.
4
Select scheme and status
Choose the merged RDEC scheme (most companies) or ERIS if your R&D spend exceeds 40% of total costs.
5
Review your tax credit
See qualifying expenditure, gross credit, net benefit after corporation tax and effective relief rate.
Frequently Asked Questions
What qualifies as R&D for tax credits?
R&D must seek to advance science or technology by resolving scientific or technological uncertainty. The project must not be commercially available and must involve a competent professional. Activities like routine testing, market research and cosmetic changes do not qualify.
What is the merged RDEC scheme?
From April 2024, the SME and RDEC schemes merged into a single scheme. All companies now claim an above-the-line credit at 20% of qualifying expenditure. For profitable companies, the net benefit is 15% after corporation tax at 25%.
What is the ERIS scheme?
The Enhanced R&D Intensive Support (ERIS) scheme provides a 27% payable credit for loss-making companies whose R&D expenditure represents 40% or more of their total expenditure. This is designed to support early-stage innovative companies.
What costs qualify for R&D tax credits?
Qualifying costs include: staff salaries and employer NI/pension for R&D work, subcontractor payments (65% qualifies), consumable materials used up in R&D, software used for R&D, and clinical trial volunteer costs. Capital expenditure does not qualify (use capital allowances instead).
How do I claim R&D tax credits?
Claims are made through your Corporation Tax return (CT600). You need to submit a detailed technical report explaining the R&D undertaken, the scientific uncertainty, and how it was resolved. Claims must be made within 2 years of the end of the accounting period.
Can startups claim R&D tax credits?
Yes, even pre-revenue startups can claim. Loss-making companies can receive a payable credit (cash payment from HMRC). Under the merged scheme, loss-making companies receive the full 20% credit. Under ERIS, qualifying companies receive 27%.
Official Sources & References
Data verified against official sources. Last checked April 2026.