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R&D Tax Credits Calculator

Calculate your potential R&D tax credit claim

Enter your details below for an instant result

Which scheme are you eligible for?

What is this? ‘SME scheme’ means your company has: - less than 500 employees - an annual turnover of less than €100 million OR a balance sheet of less than €86 million. ‘Large Scheme’, also known as the ‘RDEC’ scheme, means your company: - has more than 500 employees - Annual turnover exceeding €100 million - a balance sheet exceeding €86 million. Please note that if a company has received a project grant, it can only apply for this under the Large Company Scheme (RDEC). Additionally, SMEs that have been contracted to do R&D by a Large Company may claim for this work under the RDEC scheme. SMEs that have been contracted by another SME cannot claim for this work.

Is the company profit or loss making?

What is your annual expenditure on staff, software and consumable items relating to R&D activities?

What is this? These include things such as - Staff costs, including gross pay, NI ERS and company pension payments - Software license costs related to costs expensed to the P&L account and not treated as a fixed asset - Consumable costs related to items that are consumed or transformed during the R&D process such as materials, components, electricity and/or gas etc. For accounting periods beginning on or after 1 April 2023, include cloud computing and storage and data licence costs.

Enter Amount

What is your annual expenditure on subcontractors or agency workers relating to R&D activities?

What is this? Unconnected subcontractors and agency workers must be claimed at 65% of the value of the expenditure. The calculator will work this out for you. Connected subcontractors or agency workers (such as within the same group) can be included with the expenditure on staff, software and consumable items, as they can be claimed at 100% of their value.

Enter Amount

How to calculate for SMEs

For a profit-making SME, R&D tax credits will reduce your Corporation Tax liability for the year.

Relief is given by applying an enhanced expenditure deduction to taxable profits of the eligible spend. The revised taxable profits are then subject to the current rate of Corporation Tax.

R&D tax credits will be given as payable tax credits for a loss-making SME. The revised losses are surrendered to HMRC in exchange for this cash payment.

For expenditure from 1st April 2023, the enhanced deduction is 86%. It is then subject to the 25% corporation tax rate. The cash credit for surrendered losses is 10%. This results in a real-world benefit of 21.5% for profit-making companies and 18.6% for loss-making companies.

For expenditure up to 31st March 2023, the enhanced deduction is 130%. It is then subject to the 19% corporation tax rate. The cash credit for surrendered losses is 14.5%. This results in a real-world benefit of 24.7% for profit-making companies and 33.3% for loss-making companies.

R&D-intensive SMEs (those where R&D expenditure exceeds 40% of total expenditure) continue to qualify for an enhanced payable credit rate of 14.5% under the Enhanced R&D Intensive Support (ERIS) scheme, applicable from April 2024.

Key Changes from April 1, 2024:

  • The SME and RDEC schemes have been replaced by a merged R&D relief scheme, introducing a unified 20% taxable expenditure credit for all businesses.
  • The credit is included in taxable profits and subject to Corporation Tax at the current rate of 25%.
  • For loss-making SMEs, there is a provision for cash payments. Additionally, R&D-intensive SMEs (with R&D spend exceeding 40% of total expenditure) may qualify for an enhanced credit rate of 14.5%.

Real-World Benefits:

  • Profit-making SMEs can achieve a 15% net benefit from qualifying R&D expenditure after taxation.
  • Loss-making SMEs benefit from the cash surrender provisions, offering up to 14.5% for qualifying R&D-intensive companies.

The merged scheme simplifies the process but may reduce benefits compared to the prior SME scheme. For personalised advice, visit our R&D tax credits page or consult an R&D specialis

For more information visit our R&D tax credits page or contact us for more tailored advice.

How to calculate for RDEC

The Research & Development Expenditure Credit (RDEC) is available to Large Companies who fail to meet the eligibility criteria for the SME scheme as well as SMEs who are prevented from claiming under the SME scheme.

The RDEC is a standalone credit that is considered as a receipt when calculating trading profits. As the RDEC is an above-the-line credit, it is included in your taxable profits, therefore is taxed at the corporation tax rate.

The current rate for the RDEC is 20% of qualifying expenditure, which is then taxed at the current main rate of 25%. This gives a real-world benefit of 15% of the R&D expenditure.

For expenditure up to 31st March 2023, the RDEC rate is 13%, taxed at the corporation tax rate of 19%, which gives a real-world benefit of 10.5%.

The relief is then given by either offsetting the RDEC against your tax bill or, where no tax is payable, a cash payment will be made to you.

Key Changes from April 1, 2024:

  • The SME and RDEC schemes have been replaced by a merged R&D relief scheme, introducing a unified 20% taxable expenditure credit for all businesses.
  • The credit is included in taxable profits and taxed at the current Corporation Tax rate of 25%.
  • Loss-making companies can still benefit from the credit through cash payments.

Real-World Benefits:

  • The merged scheme retains the 15% net benefit for profit-making companies after taxation, consistent with the former RDEC benefit.
  • SMEs with R&D expenditure exceeding 40% of total costs may qualify for enhanced benefits under the Enhanced R&D Intensive Support (ERIS) scheme.

The merged scheme provides consistency across businesses, retaining the simplicity and benefits previously associated with RDEC. For further details, visit our R&D tax credits page or contact us for guidance.

Our R&D tax credit calculator

Our R&D tax credits calculator only gives a rough estimate of the potential corporation tax saving or R&D tax credit payable that you may be eligible to claim. It is based upon your R&D costs entered.

However, in-depth research is recommended for companies who want to make sure they identify all qualifying projects and expendables. We have seen countless instances where those not using a specialist service fail to claim their full entitlement - why take that risk when our expert advice can ensure you receive the maximum return?

Contact us today if you'd like more accurate estimations of your costs and projects!

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