R&D Tax Credit Estimator
Estimate your R&D tax credit under HMRC's merged scheme. Standard rate is 20%; R&D-intensive SMEs (40%+ of total expenditure on qualifying R&D) get 27%. This is a directional estimate only.
R&D Tax Credit Estimator
Estimate your R&D tax credit under HMRC's merged scheme. Standard rate is 20%; R&D-intensive SMEs (40%+ of total expenditure on qualifying R&D) get 27%. This is a directional estimate only.
All expenditure for the year. Used to test R&D intensity.
Gross salary + employer NI + pension for staff doing qualifying R&D, apportioned.
UK subcontractor invoices for R&D work. HMRC caps claim at 65% of this.
Materials, prototypes, items consumed in the R&D process.
Software licences and cloud costs used for qualifying R&D work.
Directional estimate only. Does not model the PAYE-NI cap, contractor restrictions in detail, or consumables/software apportionment rules. Get a scoping call for an accurate claim.
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How R&D tax credits work
Under the merged RDEC scheme (April 2023+), companies get an above-the-line credit of 20% on qualifying expenditure. For R&D-intensive SMEs (where qualifying R&D is 40%+ of total spend), the rate rises to 27%. The credit is taxable income, so the net benefit is approximately 75% of the gross credit for a company paying 25% corporation tax.
Qualifying expenditure includes staff time on R&D, 65% of subcontractor costs, consumables and software/cloud used for R&D. Actual claims involve detailed scoping and HMRC-specific rules not fully modelled here.
Frequently asked questions
- What is the merged RDEC scheme?
- From April 2023, HMRC merged the SME and RDEC schemes into a single scheme for most companies. The headline rate is 20% above-the-line credit on qualifying expenditure. R&D-intensive SMEs (40%+ intensity) get a higher 27% rate.
- Why is only 65% of subcontractor cost claimable?
- HMRC restricts claims on UK subcontractor invoices to 65% of the cost. For overseas subcontractors the rules are different and generally more restrictive.
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