Current rates for accounting periods beginning on or after 1 April 2024: the merged scheme pays a 20% expenditure credit (worth 15p to 16.2p per £1 after tax), and ERIS pays loss-making, R&D-intensive SMEs up to 26.97p per £1. Not sure which applies? Start here.
How the numbers work
Merged scheme: a 20% credit is added above the line and then taxed, so £100,000 of qualifying spend gives a £20,000 gross credit worth £15,000 at the 25% rate, or £16,200 at 19%. Loss-makers have notional tax deducted at 19% only, so the cash outcome is also £16,200 per £100,000. ERIS works differently: an additional 86% deduction and a 14.5% payable credit produce up to £26,970 per £100,000 of qualifying spend, and the credit is not taxable.
Cost boundaries, subcontracting rules and the PAYE cap all change the outcome. A scoping conversation with a chartered adviser will give you a number you can plan around.
This calculator is provided for illustration only. It applies headline rates to the single figure you enter and assumes every pound of it qualifies — a real claim rarely works like that. Cost eligibility, the 65% restriction on payments to unconnected subcontractors, contracted-out and overseas rules, marginal relief on the corporation tax rate, and the PAYE/NIC cap (£20,000 plus 300% of relevant PAYE and NIC) can each change the outcome materially. Its output is not tax advice and must not be relied on for any decision or filing; we accept no liability for reliance on it. Before acting on a figure, have the claim scoped by a competent chartered tax adviser — we will give you a straight answer. Figures use the standard rates for accounting periods beginning on or after 1 April 2024.
Want the real number, not the estimate?
A first conversation costs nothing and commits you to nothing. You will speak to a qualified adviser, not a salesperson.
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