Could you claim R&D relief?

tiemadmin • 12 December 2024

From April 2024, UK businesses can access enhanced R&D tax relief through the merged RDEC and new ERIS schemes. With generous deductions and credits for R&D-intensive projects, the schemes offer tailored support to fuel innovation and drive growth.

Research and Development (R&D) tax reliefs are designed to support UK companies engaged in innovative science and technology projects. As of April 2024, the R&D Expenditure Credit (RDEC) and the Small and Medium Enterprise (SME) Scheme were merged. The new R&D expenditure credit (RDEC) and enhanced R&D intensive support (ERIS) came into effect for accounting periods beginning on or after 1 April 2024. While the expenditure rules for both are the same, the calculation methods differ.

The merged RDEC scheme is a taxable expenditure credit available to eligible trading companies subject to UK Corporation Tax. Even if a company qualifies for the ERIS, it may choose to claim under the merged scheme instead, but both schemes cannot be claimed for the same expenditure.

Although the calculation and payment processes for the merged RDEC scheme are similar to the previous RDEC scheme, there are some key differences:

  • Small profit-making and loss-making companies benefit from a lower rate of notional tax restriction.
  • A more generous PAYE cap applies.

The merged RDEC scheme is subject to Corporation Tax, as it is considered trading income.

The ERIS scheme provides additional support for loss-making, R&D-intensive SMEs:

  • They can deduct an extra 86% of their qualifying costs (in addition to the 100% deduction already included in their accounts), resulting in a total of 186% of qualifying costs being deductible when calculating their adjusted trading loss.
  • They can also claim a payable tax credit, which is not taxable and can be worth up to 14.5% of the losses available for surrender.

There have also been significant changes regarding the availability of relief for overseas R&D activities, which are now more restricted.

The post Could you claim R&D relief? appeared first on Feldon Accountancy.

< Older Post

Newer Post >

Budgeting and forecasting in a period of lower confidence

by tiemadmin • 9 February 2026
Many business owners are entering the new year with a sense of caution. Confidence across the UK business community has softened, driven by continued cost pressures, uncertainty over tax policy and The post Budgeting and forecasting in a period of lower confidence appeared first on Feldon Accountancy.

Business rates support and cash flow for hospitality businesses

by tiemadmin • 9 February 2026
Hospitality businesses continue to operate in a challenging environment. Rising wage costs, energy prices and supply chain pressures have all placed strain on margins. Against this backdrop, recent The post Business rates support and cash flow for hospitality businesses appeared first on Feldon Accountancy.

Eligibility for Business Asset Disposal Relief

by tiemadmin • 5 February 2026
Business Asset Disposal Relief (BADR) can significantly reduce the Capital Gains Tax due when selling a business or shares, but with higher rates coming from April 2026, timing and eligibility matter The post Eligibility for Business Asset Disposal Relief appeared first on Feldon Accountancy.