R&D Tax Calculator

Depending on your business’s circumstances, you could benefit from:

• Corporation Tax Savings: ERIS gives an SME that is loss-making, R&D-intensive, and not an ineligible company an additional 86% deduction for qualifying R&D expenditure, so the total deduction is 186% of that expenditure D1.419 Alternative regime for loss-making R&D-intensive SMEs from April 2024. If the company has taxable profits against which that enhanced deduction has value, that produces a corporation tax saving in the ordinary way.
  That said, ERIS is framed for companies that make a loss in the trade in the period; where the company is loss-making, the practical value often comes from the payable credit rather than an immediate corporation tax reduction.
  
  
• Profit-making company: deduction reduces taxable profits; loss-making qualifying ERIS claimant: deduction increases the trading loss, which may then support a surrenderable loss and a 14.5% credit
  
  
• Cash Rebate: Claim a repayment of corporation tax already paid by submitting an amended return.
  
  
• Loss Relief: ERIS works by increasing the trading loss through the additional deduction, and the company may then claim an R&D tax credit by surrendering the relevant loss amount. If it claims the credit, the company’s carried-forward trading loss is correspondingly reduced.
  
  
• Cash Credit: If your company is loss-making, convert your enhanced R&D losses into a cash payment from HMRC.
  
  

Maximise your innovation investment—use our R&D tax calculator today to discover your potential tax relief and cash benefits.

The table below outlines the potential benefit under the two schemes before and after 1st April 2023.

We recommend contacting our team to discuss the results before making any decisions.

Large Companies

Companies which do not meet the SME criteria are classified as ‘Large’ and can claim under the Research and Development Expenditure Credit (‘RDEC’). The exact rate of cash benefit available depends on the period for which a claim is being made, due to changes in the prevailing corporation tax rate. The maximum rate is currently 13% (qualifying expenditure incurred after 1 April 2020).

Discover how our Innovation Tax Reliefs services cover everything from eligibility checks to claim submission. Take a closer look.

📞 Please contact the R&D team by calling 020 8037 1030 or complete the enquiry form on this page and we will come back to you.