How much is an R&D claim worth?

If you’re making a profit and your accounting period began between 1 April 2023 and 31 March 2024, SME relief could offer your business an 86% additional deduction. The RDEC scheme offers a 20% expenditure credit (around 15% net after tax). If you’re an SME and made a loss, surrendering losses for a cash credit of 10% (or 14.5% if R&D-intensive) may yield less benefit than carrying losses forward against future profits.

Each claim varies depending on which scheme your business is eligible for. This is because different rates apply to the SME scheme, RDEC and merged scheme.

If your accounting period begins on or after April 1st 2024, rates for SMEs and large companies will be at a fixed rate. This is due to recent changes in R&D tax relief.

Using an R&D tax credit calculator can provide you with an estimate of your claim’s worth.