United Kingdom R&D tax incentive

Overview

Scheme	Merged R&D expenditure credit (RDEC) scheme, and enhanced R&D intensive support (ERIS)
Applies to	Accounting periods beginning on or after 1 April 2024
Administered by	HM Revenue and Customs (HMRC)
Benefit type	Taxable expenditure credit. ERIS gives an additional deduction and a payable credit.
Rates	Merged scheme: 20% of qualifying expenditure. ERIS: an extra 86% deduction, and a payable credit worth up to 14.5% of the surrenderable loss.
ERIS condition	Loss-making SMEs whose relevant R&D expenditure is at least 30% of total relevant expenditure
Refundable	Yes. Payable credits are capped at £20,000 plus 300% of the company's relevant PAYE and National Insurance liabilities.
Before you claim	Claim notification if you are claiming for the first time or your last claim was more than 3 years ago. An additional information form with every claim.
Claim deadline	within 2 years of the end of the accounting period the claim relates to

Who can claim. Companies within the charge to UK Corporation Tax that carry out qualifying R&D. The merged scheme is open to companies of any size. ERIS is for loss-making SMEs that meet the R&D intensity condition.

Eligibility

A project qualifies if it seeks an advance in science or technology by resolving scientific or technological uncertainty. HMRC applies the government's guidelines on the meaning of R&D for tax purposes.

What is excluded

For accounting periods beginning on or after 1 April 2024, relief for contracted out R&D and externally provided workers is generally limited to work carried out in the UK.

Documentation

Every claim needs an additional information form that describes the R&D projects and breaks down the qualifying costs. Keep project records that show the advance sought, the uncertainties and how the work resolved them.

Calculation and rates

Item	Detail
Merged scheme	20% expenditure credit on qualifying expenditure, taxable
ERIS deduction	An extra 86% of qualifying costs, a total deduction of 186%
ERIS payable credit	Up to 14.5% of the surrenderable loss
Payable credit cap	£20,000 plus 300% of relevant PAYE and National Insurance liabilities

How to claim

Check whether you must notify HMRCIf you are claiming for the first time, or your last claim was more than 3 years ago, submit a claim notification within 6 months of the end of the period of account.
Complete the additional information formDescribe the projects and break down the qualifying costs. It is required for every claim.
Claim in the Company Tax ReturnMake the claim within 2 years of the end of the accounting period.

Event	When
Claim notification	Within 6 months after the end of the period of account, if required
Additional information form	With every claim
Claim	Within 2 years of the end of the accounting period the claim relates to

Official sources

Educational content only, not tax advice. General information on the United Kingdom scheme, checked against the sources above on 1 October 2026. See the disclaimer.

Programs for United Kingdom

The merged scheme and ERIS, the R&D intensity condition, claim notification, the additional information form and the PAYE and National Insurance cap.

Program	For
R&D Tax Fundamentals The grounding every claimant needs, in any of the countries we cover: what research and development means for tax purposes, how a claim is built from project to filing, which records stand up to review, and how to work with an advisor from an informed position.	Companies & in-house finance teams	Register interest
Technical Teams Program For engineers, scientists and project leads whose work is the subject of a claim: why their input matters, how to identify uncertainty, record work as it happens and write the narrative.	Companies & in-house finance teams	Register interest
Startups and Scale-ups For founders and early finance hires: whether a claim is worth making, how to set up records from day one, how funding interacts with the incentive and what the first claim involves.	Companies & in-house finance teams	Register interest
In-House Finance Team Program For finance and tax teams that want to run R&D claims internally, or manage an external advisor from a position of knowledge: project identification workshops, time capture, cost allocation, the technical narrative, internal review and fee benchmarking.	Companies & in-house finance teams	Register interest
Advisor and Practitioner Program For accountants and advisors who prepare claims for clients: legislation and guidance, eligibility analysis, advanced calculations, technical interviews, reports, disputes, and ethics, integrity and fee arrangements.	Tax professionals	Register interest
Leadership Briefing: R&D Tax Relief for Executives A short, board-level overview for founders, directors and executives: what the incentive is worth to the business, the risks of a poorly prepared claim, how to govern the process, and what good advisors cost.	Companies & in-house finance teams	Register interest

Guides

05 Sept 2026How to document R&D activities as you go: a calendar for the financial yearContemporaneous records are the difference between a claim that is defended in an afternoon and one that is argued about for a year. Here is a documentation routine a busy team can actually keep.Documentation and compliance 28 Aug 2026Common R&D claim mistakes and how to avoid themThe same handful of errors appear in weak claims in every jurisdiction. Most are avoidable with a little structure. Here are the ones that matter, why they matter, and what to do instead.Running a claim 14 Aug 2026Qualifying versus non-qualifying activities: where the line really sitsEvery R&D scheme draws a line between the work that qualifies and the work around it. The line is in a similar place in every country. Here is how to find it in your own projects, with examples.Eligibility

United Kingdom: Merged R&D expenditure credit scheme and enhanced R&D intensive support (ERIS)