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R&D Tax Credits Calculator

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Calculate your potential R&D tax credit claim

Enter your details below for an instant result

What size is your company?

What is this? For UK R&D tax relief, a small or medium-sized enterprise (SME) generally has fewer than 500 staff and either annual turnover of up to €100 million or a balance sheet total of up to €86 million. Include the relevant figures for linked and partner companies. Receiving a grant or doing work for a customer does not change your company’s size. If the calculator asks whether you are R&D intensive, the threshold for accounting periods starting on or after 1 April 2024 is at least 30% of total relevant spending, including connected companies.

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

Enhanced support for loss-making SMEs

A small or medium-sized company that makes a trading loss for tax purposes can receive cash towards its research and development costs. For accounting periods starting on or after 1 April 2024, enhanced R&D intensive support (ERIS) generally requires qualifying R&D spending to account for at least 30% of total relevant spending. Include connected companies when working this out.

For example, a loss-making company with £100,000 of qualifying R&D costs and £300,000 of total relevant spending meets the spending test. If it has enough losses to give up in exchange for cash, the maximum credit on those costs is £26,970. That is 14.5% of £186,000: the £100,000 of costs plus an extra tax deduction of £86,000.

A company below 30% may still qualify if it met the test in its previous 12-month accounting period and made a valid claim for that period on expenditure incurred on or after 1 April 2023. See HMRC’s guide to the two schemes for the conditions.

For accounting periods that started before 1 April 2024, the earlier intensive SME rules used a 40% threshold for eligible spending from 1 April 2023.

For more information, visit our R&D tax credits page or contact us.

How the R&D expenditure credit is calculated

Companies of any size that carry out qualifying research and development can receive a taxable credit towards their costs. For accounting periods starting on or after 1 April 2024, the merged R&D expenditure credit (RDEC) is 20% of qualifying spending.

For example, £100,000 of qualifying spending gives a £20,000 credit before tax. If the credit is taxed at 25%, the benefit is £15,000. At 19%, it is £16,200. The credit first goes towards tax owed. Any cash payment depends on the company’s circumstances and the scheme’s payment rules.

Companies with accounting periods that started before 1 April 2024 use the earlier schemes. Under the earlier RDEC scheme, the rate was 13% of qualifying expenditure before 1 April 2023 and 20% on or after that date.

For more information, visit our R&D tax credits page or contact us.

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.

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

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