UK R&D Tax Credit Estimator
An estimator to provide indicative values for UK R&D tax reliefs. Intended for general guidance only — not a substitute for professional advice.
- Page updated:
- Jun 10, 2026
- Tool version:
- v1.2.0
Overview
Estimate the value of UK R&D tax relief under the merged R&D Expenditure Credit (RDEC) scheme, which applies to accounting periods beginning on or after 1 April 2024 and replaces the separate SME and RDEC schemes for most claimants. Enter your qualifying R&D expenditure to see the gross credit and the net cash benefit after Corporation Tax.
Educational estimate, not professional advice. R&D claims require the work to meet HMRC's definition of R&D and are subject to scrutiny. Loss-making R&D-intensive SMEs may instead use the enhanced ERIS scheme — see the methodology.
Results
Gross R&D Expenditure Credit
$20,000.00
Corporation Tax on the (taxable) credit
$5,000.00
Net cash benefit after tax
$15,000.00
Net benefit per £1 of R&D spend (%)
15
How to read the result
- What it means
- The displayed value is an estimate based on your inputs. It represents the calculated scenario under current assumptions, not a guaranteed amount.
- Calculation limits
- The model uses simplified formulas and cannot account for all variables in your specific case (local regulations, personal conditions, temporal changes).
- Next step
- Use the result as a starting point. Adjust parameters to compare scenarios and validate with a professional when needed.
Glossary+−
- R&D Expenditure Credit (RDEC)
An above-the-line, taxable credit on qualifying R&D expenditure, now the basis of the merged R&D scheme (generally 20%).
- Merged Scheme
The single R&D relief scheme replacing the separate SME and RDEC schemes for periods beginning on or after 1 April 2024.
- ERIS
Enhanced R&D Intensive Support for loss-making SMEs with R&D of at least 30% of total expenditure: 86% additional deduction plus a 14.5% payable credit.
- Qualifying Expenditure
Eligible R&D costs — staff, certain subcontractors, consumables, software and data/cloud — meeting HMRC's definition of R&D.
- Above-the-Line Credit
A credit recognised as taxable income in the accounts, so Corporation Tax applies to it, reducing the net benefit.
Key takeaways
Enter qualifying R&D expenditure, the RDEC rate and your Corporation Tax rate to estimate the gross credit and net cash benefit under the merged scheme.
Estimate only — excludes the PAYE/NIC cap, subsidised-expenditure rules and the ERIS computation. Confirm eligibility with HMRC guidance or an R&D specialist.
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Useful links
Worked examples
Example: £100,000 qualifying spend, 25% CT
A profitable company with £100,000 of qualifying R&D under the merged scheme.
Interpretation
The £100,000 of R&D yields a £15,000 net benefit after Corporation Tax. A 19% small-profits payer would net £16,200 (16.2%).
Frequently asked questions
What is the merged R&D scheme?
From accounting periods beginning on or after 1 April 2024, the SME and RDEC schemes merged into a single above-the-line R&D Expenditure Credit, generally at 20% of qualifying expenditure.
Why is the net benefit less than 20%?
The RDEC is taxable income, so Corporation Tax is charged on it. At 25% CT the net benefit is 20% × 0.75 = 15%; at 19% it is 16.2%.
What about loss-making R&D-intensive SMEs?
They may use Enhanced R&D Intensive Support (ERIS): an 86% additional deduction plus a 14.5% payable credit, worth up to about 27% of qualifying spend. It depends on the loss position and is not computed here.
What counts as qualifying expenditure?
Staff costs, certain subcontractor and externally provided worker costs, consumables, software, and data/cloud costs used in qualifying R&D that seeks an advance in science or technology. See HMRC guidance.
Sources & references
- GOV.UK — Research and Development (R&D) tax relief: https://www.gov.uk/guidance/corporation-tax-research-and-development-rd-relief
- GOV.UK — The merged R&D scheme and enhanced support for R&D-intensive SMEs: https://www.gov.uk/guidance/check-if-you-can-claim-for-research-and-development-rd-tax-relief
- GOV.UK — Corporation Tax rates: https://www.gov.uk/corporation-tax-rates
Quality & oversight
- Author
- Ugo Candido, MBA
- Maintained by
- Ugo Candido, MBA
- Page updated
- Jun 10, 2026
- Tool version
- v1.2.0