R&D tax relief calculator: what could your claim be worth?
Enter your qualifying R&D spend and whether the company makes a profit or a loss. The calculator applies the merged scheme and, for R&D intensive loss-makers, enhanced R&D intensive support. Your figures stay on this page.
Your estimated R&D tax relief
Accounting periods beginning on or after 1 April 2024- Qualifying R&D spend
- £100,000
- Merged scheme credit at 20%
- £20,000
- Corporation Tax on the credit at 25%
- −£5,000
- Merged scheme: benefit kept
- £15,000
An estimate from the figures you entered. The relief depends on the work meeting HMRC's definition of R&D, on which costs qualify and on your wider tax position. It is confirmed only by a prepared claim.
We turn this estimate into a claim HMRC can check. We test the projects, confirm the qualifying costs and submit the forms in the right order. For a fixed fee, request a quote. If you only needed the number, you have it.
The rates behind the result
For accounting periods beginning on or after 1 April 2024 most companies claim under the merged scheme. The credit is 20% of qualifying R&D spend and it is taxable. A company paying the 25% main rate keeps 15% of its spend. A company paying the 19% small profits rate keeps 16.2%. Companies in the marginal relief band pay a little more on the credit than the main rate.
A loss-maker has no tax for the credit to settle, so HMRC holds back notional tax at the 19% small profits rate and pays the rest. A loss-making SME whose R&D spend is at least 30% of its total spend can claim enhanced R&D intensive support instead: an extra 86% deduction and a cash credit of 14.5% of the surrenderable loss. The calculator assumes no other income or group relief uses the loss.
Whether any of this applies depends on the work. Read HMRC's guidance on activities that qualify as R&D, or see how we prepare R&D tax credit claims. To estimate the Corporation Tax bill itself, use our Corporation Tax calculator.
How much is R&D tax relief worth?
Under the merged scheme the credit is 20% of qualifying R&D spend. The credit is taxable, so a company paying the main rate of 25% keeps 15% of its spend and a company paying the 19% small profits rate keeps 16.2%. A loss-making SME that qualifies for enhanced R&D intensive support can receive up to 14.5% of its surrenderable loss in cash instead.
Can a loss-making company claim R&D tax credits?
Yes. Under the merged scheme a loss-maker has notional tax at the 19% small profits rate held back from its 20% credit, which leaves 16.2% of its spend payable subject to the PAYE cap. The amount held back is carried forward against future Corporation Tax. A loss-making SME whose R&D spend is at least 30% of its total spend can claim enhanced R&D intensive support instead.
What is the R&D intensity condition?
For accounting periods beginning on or after 1 April 2024, a loss-making SME qualifies for enhanced R&D intensive support if its relevant R&D expenditure is at least 30% of its total expenditure, including that of connected companies. A company that met the condition and claimed in its last 12-month accounting period can still claim for the next one.