What are the different types of R&D tax credit schemes?

As of April 2024, there are now three prominent R&D schemes. This is due to recent HMRC R&D updates that introduced a new scheme designed to simplify the claims process. 

If your accounting period begins prior to April 1st 2024, your R&D tax credit claim will fall under one of the following schemes.

The SME Scheme: 

Offers R&D tax credits to SMEs (small and medium sized enterprises) that have fewer than 500 employees, have an annual turnover of under €100m, and a balance sheet under €86m.

The RDEC Scheme: 

Offers R&D tax credits to large companies with a staff headcount of over 500, have an annual turnover of over €100m, and at least €86m or more in gross assets. 

If your accounting period begins on or after April 1st 2024, your R&D tax credit scheme will fall under the new merged scheme, which incorporates the SME and RDEC schemes.