Knowledge bank
Straight answers, kept current.
The questions companies actually ask about R&D tax relief, answered plainly and reviewed on a schedule.
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How the schemes work
Merged scheme, ERIS, and which one your accounting period lands in.
- How is an R&D tax relief claim calculated? Essential read Add up qualifying expenditure, apply the rate for the scheme, then work through what the relief actually pays out — which is where the figure moves.
- What is enhanced R&D intensive support (ERIS)? Essential read The alternative to the merged scheme for loss-making SMEs whose R&D is at least 30% of total expenditure. Worth 26.97% of qualifying spend in cash, against 16.2% under the merged scheme.
- What is the merged R&D expenditure credit scheme? Essential read One scheme for almost every claimant in accounting periods beginning on or after 1 April 2024: a taxable 20% credit, worth 15% or 16.2% after tax depending on the claimant.
- Which R&D scheme applies to my company? Essential read Start with the date your accounting period began, not your company size. That one date decides whether you are in the merged scheme era or the legacy SME and RDEC rules.
Eligibility
Who can claim, who cannot, and the test HMRC applies.
- Can a company limited by guarantee claim R&D tax relief? Yes, unless it is a charity or another excluded body. Having no share capital is irrelevant — what matters is being a company within the charge to corporation tax and carrying on a trade.
- Can an overseas company claim UK R&D tax relief? Only through a UK permanent establishment that is within the charge to corporation tax. Where the company is incorporated does not matter; whether it is taxed here does.
- Can my company claim R&D tax relief? You need to be a company within the charge to UK corporation tax, carrying on a trade, with expenditure on a qualifying project that is deductible in computing the profits of that trade.
- Does my company have to be a going concern to claim R&D tax relief? Yes, to receive money. The test looks at your latest published accounts and at whether you are in administration or liquidation, and it is applied when the claim is made.
- Is my company an SME for R&D tax relief purposes? Fewer than 500 staff, and either turnover of €100 million or less or a balance sheet total of €86 million or less — but tested on your company aggregated with its linked and partner enterprises.
- Who can't claim R&D tax relief? Essential read Charities, universities, scientific research organisations and health service bodies are excluded by name. So is anything that is not a company — partnerships, LLPs and sole traders.
Reference
Rates, thresholds and dates in one place.
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