R&D Tax Credit Estimator.

From 1 April 2024 the SME and RDEC schemes were merged into a single above-the-line credit at 20% of qualifying R&D expenditure (RDEC). The credit is taxable, so the net benefit is roughly 15% at the 25% main rate and 16.2% at the 19% small-profits rate.

Enhanced R&D Intensive Support (ERIS) applies to loss-making SMEs whose qualifying R&D is at least 30% of total expenditure. Eligible companies receive an 86% additional deduction, then can surrender the resulting loss for a 14.5% payable credit — an effective net benefit of around 27%.

Staffing costs (including employer NI and pension), externally provided workers, subcontracted R&D, consumables used or transformed during R&D, software, data licences and cloud-computing costs that directly support R&D activity. From April 2023, overseas subcontractor costs are restricted unless qualifying conditions are met.

HMRC's published target is 28 days for a Merged-Scheme claim, but real-world processing times have varied between 6 and 16 weeks in recent periods. Countify pre-files the additional information form (AIF) and a competent professional's technical narrative to reduce delays.

Yes, claims must be made within two years of the end of the accounting period of expenditure. From 8 August 2023, all claims must be pre-notified using HMRC's claim notification form within six months of the end of the accounting period unless an existing claim has been filed in the previous three years.