UK R&D Tax Relief (merged scheme and ERIS) 🎁 Program
A 20% R&D expenditure credit, or a 186% deduction plus payable credit for loss-making R&D-intensive UK SMEs.
| Who qualifies | UK Corporation Tax trading companies doing qualifying R&D; ERIS only for loss-making SMEs with R&D at least 30% of total expenditure. |
|---|---|
| Open in | United Kingdom |
| Partner code needed | No: apply directly |
| Deadline | claimed through your Company Tax Return |
| Terms last checked | 2026-10-11 |
About UK R&D Tax Relief (merged scheme and ERIS)
What you get
For accounting periods starting on or after 1 April 2024 the UK has two routes. The merged R&D expenditure credit (RDEC) gives a credit of 20% of qualifying R&D costs; it is taxable as trading income. Enhanced R&D intensive support (ERIS) gives loss-making, R&D-intensive SMEs an extra 86% deduction on top of the normal 100% (186% in total), and lets them surrender losses for a payable tax credit of up to 14.5% of the surrenderable loss, which is not taxable.
Who qualifies
Trading companies within UK Corporation Tax with a project that meets the R&D definition. For ERIS your company must be an SME, loss-making before the extra deduction, and spend at least 30% of total expenditure (including connected companies) on relevant R&D, or have met that test in the previous 12-month period with a valid claim. Profit-making or less R&D-intensive SMEs use the merged RDEC. You cannot claim both schemes on the same costs, and some overseas costs are restricted.
Good to know
Check whether you must tell HMRC in advance that you plan to claim, and file the additional information form with your claim. SMEs can ask for advance assurance. Claim deadlines are in HMRC's linked guidance, not on this page. Many claims are reviewed closely, so keep project records that show the technical uncertainty you worked on.
Verdict
Not a grant, but for a pre-revenue UK tech startup with engineers on payroll, ERIS can return real cash every year. Keep good records from day one.
How to apply
- Check that your work meets HMRC's definition of R&D and whether you need to notify HMRC before claiming.
- Work out whether you qualify for ERIS (loss-making, 30%+ R&D intensity) or should use the merged RDEC.
- Optionally ask HMRC for advance assurance if you are an SME.
- Submit the additional information form, then claim in your Company Tax Return (CT600).
- Keep records of projects, staff time and costs in case HMRC reviews the claim.
Who it is for
Steps UK R&D Tax Relief (merged scheme and ERIS) helps with
Pros
- Payable cash credit for loss-making R&D-intensive SMEs
- Open to all sectors, no competition
Cons
- Advance notification and extra forms are easy to miss
- HMRC checks claims closely
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