R&D decision guide
The applicable route depends on the accounting period and the company's circumstances.
As of 1 April 2024, most UK companies now claim R&D tax relief through RDEC, replacing the previous SME and RDEC routes.
Single unified scheme with 20% above-the-line credit. Net benefit ~15% for profit-makers, up to 16.2% cash credit for loss-makers.
Loss-making SMEs that spend at least 30% of their total costs on qualifying R&D may be eligible for Enhanced R&D Intensive Support. ERIS is not available to large companies.
This can increase the cash credit rate for these loss-making SMEs to around 27%.
Even if your R&D is subsidised, for example through a grant, you can still claim under RDEC. The old restrictions on SME claims for subsidised projects no longer apply.