Government Incentives for Business Innovation

Research & Development (R&D) tax relief is a UK government scheme designed to reward businesses for investing in innovation. Whether you're creating something entirely new, improving an existing process, or overcoming technical and/or scientific challenges & uncertainties, R&D tax relief may allow you to reduce your Corporation Tax bill or receive a cash repayment.
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Whilst there have been several, significant changes over the last few years, leading to multiple derivations of the R&D tax relief scheme, for all accounting periods starting on or after 1st April 2024, and the introduction of the ‘Merged Scheme’ (effectively removing the need for separate SME and Large Company schemes), there is now the following TWO main schemes that would apply:

Merged RDEC Scheme

For Both SME’s & Large Companies (majority of qualifiable companies fall into this scheme)

Enhanced R&D Intensive Support (ERIS) Scheme

This Scheme is Devised for Companies Undertaking R&D Intensive Work

Who Qualifies for ERIS?

While other R&D tax relief schemes support a wide range of businesses, ERIS is a little more exclusive. The only businesses eligible for Enhanced R&D Intensive Support are loss making SMEs that are R&D intensive.

A loss-making SME is a small or medium sized enterprise that reports a trading loss for tax purposes, before applying deductions. To determine whether it qualifies as R&D intensive, a business must meet HMRC’s intensity condition:

The business must meet those criteria for the accounting period they are claiming for, although there is a grace period where they can still claim if:

This means that if your R&D intensive SME is operating at a loss and you’re preparing to make an R&D tax credit claim under ERIS, you have to pay close attention to your accounting period.

R&D Tax Credit Relief Rates

R&D Tax Credit Relief Rates

Understand how R&D tax credits have shifted in recent years

Company Type SME Scheme
Before April 1 2023		 SME Scheme
After April 1 2023		 RDEC
Before April 1 2023		 RDEC
After April 1 2023		 Merged Scheme
From April 1 2024		 Enhanced R&D Intensive Support
From April 1 2024
Profit making SME Up to 33.35% Up to 18.6% 10.5% 15% 16.2%
Loss making SME Up to 24.7% Up to 21.5% 10.5% Up to 16.2% Up to 16.2%
R&D intensive SME Up to 27% Up to 27%
Large Business 10.5% Up to 16.2% Up to 16.2%

The key to a successful claim is understanding what qualifies - and presenting that information clearly and compliantly.

Qualifying R&D Work – Sector Examples

You don’t need to wear a lab coat or build rockets to claim R&D tax relief. Many companies across a wide range of industries are solving technical problems every day — and that work may qualify.

Software & IT
Developing bespoke platforms, solving data integration issues, creating new tools or features.
Construction & Engineering
Working around complex site challenges, designing new structural solutions, integrating modern HVAC or control systems.
Manufacturing
Refining processes, improving product performance, working with new materials or automation.
Farming & Agriculture
Testing new irrigation systems, crop rotation techniques, sustainable packaging or machinery improvements.
Pharmaceuticals & Life Sciences
Developing drug delivery systems, lab process innovations, or diagnostic methods.
Product Design
Prototyping, ergonomic redesign, compliance adaptations.

Want to Check Your Company’s Eligibility? The Quickest & Simplest Way Is To Arrange An Initial Eligibility Check With One Of Our Consultants – To Arrange A Call Click Here

Arrange Eligibility Check

Qualifying R&D Expenditure

You don’t need to wear a lab coat or build rockets to claim R&D tax relief. Many companies across a wide range of industries are solving technical problems every day — and that work may qualify.

Light
Staff Costs
Gross salaries, employer NI, pension contributions, and bonuses.
$15/Light
Learn more
Basic
Subcontractors & Externally Provided Workers
A proportion of subcontracted R&D work.
$30/Basic
Learn more
Universal
Software
Licence fees, cloud computing, and data services (from April 2023).
$60/Universal
Learn more
Universal
Consumables
Prototypes, test materials, utilities used in the development process.
$60/Universal
Learn more
Universal
Clinical Trial Volunteers
In life sciences projects.
$60/Universal
Learn more

How Your R&D Claim Process Looks

01
Initial Consultation

We assess your business and projects to determine if R&D tax relief is applicable — no pressure, no cost

02
Project Review & Technical Interview

Our consultants explore technical details to identify qualifying activities based on legislation — not assumptions.

03
Cost Analysis

We forensically review your accounts; payroll and all projects spend to identify eligible qualifiable expenditure. We then work with you in understanding how to compliantly apportion these costs a part of the methodical and systematic claim process

04
Technical Report

Through working with your competent professionals, our team of qualified and experienced consultants will write a detailed, HMRC compliant project report, which is then checked with you prior to approval and submission

05
Claim Submission to HMRC

Once the qualifiable expenditure and project report has been finalised, checked and approved by you, we can either provide a full submission pack for your accountant, or (as with the majority of our clients), we’re able to submit your claim directly on your behalf

06
Follow-up & Enquiry Support

We stay with you — supporting all submissions and defending any claims if HMRC has questions

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