R&D Tax Credit Merged Scheme 2027 Calculator UK
Calculate R&D tax credit under the merged scheme for accounting periods from April 2024. 20% above-the-line credit + ERIS for loss-making R&D-intensive SMEs.
| Merged-scheme credit rate | 20% (above-the-line) |
| ERIS payable credit rate | 14.5% on enhanced 86% |
| Corporation Tax on RDEC credit | — |
| Loss surrender rate (merged) | 19% (small profits rate cap) |
| Effective net benefit | — |
What Is the Merged R&D Scheme?
For accounting periods starting on or after 1 April 2024, the old SME and RDEC schemes are merged into a single above-the-line credit. The headline rate is 20% of qualifying R&D expenditure, taxed at the prevailing Corporation Tax rate (19% small profits to 25% main). This gives a net cash benefit of roughly 15–16.2% depending on company size. R&D-intensive loss-making SMEs (those spending ≥30% of total expenditure on R&D — reduced from 40% in April 2024) can claim the more generous Enhanced R&D Intensive Scheme (ERIS) of 27% net benefit.
How the 2027 Rules Differ
From April 2024: all companies claim under the merged scheme. Cap on payable credit £20,000 + 300% of PAYE/NIC. Overseas subcontractor and EPW costs largely excluded (UK-based bias). Additional information form mandatory pre-claim — penalties for non-compliance up to £400 per error. Claim window 2 years from end of accounting period.
How to Maximise Your Claim
Document the technical uncertainty resolved (HMRC's BEIS test). Track staff time on R&D projects. Include qualifying indirect activities (admin support, project management for R&D). For ERIS, ensure your R&D intensity calc includes the right denominator. Always engage a specialist R&D adviser pre-submission since HMRC enquiry rates rose sharply post-2023.
Source and Disclaimer
Rules sourced from gov.uk and HMRC CIRD manual as of May 2026. This is an educational calculator and is not tax advice. Consult an R&D specialist tax adviser before filing. Last updated: May 2026.
Source: gov.uk/guidance/corporation-tax-research-and-development-tax-relief-for-large-companies