To use the calculator, enter your taxable profit or loss, and your qualifying R&D expenditure before pressing the “Calculate” button.
If you have a tax saving, this can be used as detailed below, or a combination of these options, if preferred:
A Corporation Tax Saving – reduce your corporation tax bill when you make a claim in the same year;
A cash rebate – a repayment for the tax already paid by submitting an amended return;
Loss reliefs – Carry the losses forward and offset it against future profits, or surrender it for group relief;
A cash credit – for a loss-making company, you can choose to receive a cash payment from HMRC, in exchange for the surrender of your R&D enhanced losses. 230% tax deduction by 130% uplift in qualifying costs. Convert losses to cash refunds (up to 33% of qualifying costs) – businesses surrender the loss and take the cash credit at a lower rate of 14.5%. It can be worth up to 33p for every £1 spent on R&D.
| SME Scheme | RDEC Scheme | Merged Scheme – R&D expenditure credit (RDEC) | Enhanced R&D intensive support (ERIS) for SME’s | |||
| Up to 31/03/2023 | From 01/04/2023 | Up to 31/03/2023 | From 01/04/2023 | From accounting periods starting on or after 01/04/2024 | From accounting periods starting on or after 01/04/2024 | |
| Profitable company | 130% uplift on costs = 24.7% net benefit | 86% uplift on costs = 21.5% net benefit | Headline rate 13% = 10.5% post tax | Headline rate 20% = post tax rate between 14.7% – 16.2%* | Headline rate 20% = post tax rate between 14.7% – 16.2%* | Not applicable |
| Loss making company | Costs plus 130% uplift = 230 x 14.5% repayable credit = 33.4% subsidy | Costs plus 86% uplift = 186 x 10% repayable credit = 18.6% subsidy | 10.5% subsidy | 15% subsidy | 16.2% subsidy | Not applicable |
| Loss making R&D intensive company | Not applicable | Costs plus 86% uplift = 186 x 14.5% repayable credit = 26.97% subsidy | Not applicable | Not applicable | Not applicable | Costs plus 86% uplift = 186 x 14.5% repayable credit = 26.97% subsidy |
The calculator is intended to provide you with an indication of the amount of R&D tax relief that should be available to you. The table below summarises. the potential tax benefit for to be gained under the two schemes pre 1st April 2023 and post 1st April 2023. We recommend that you get in touch to discuss this in more detail with the team before making any decisions as a result of this calculation.
Large Companies
Companies which do not meet the SME criteria are classified as ‘Large’ and can claim under the Research and Development Expenditure Credit (‘RDEC’). The exact rate of cash benefit available depends on the period for which a claim is being made, due to changes in the prevailing corporation tax rate. The maximum rate is currently 13% (qualifying expenditure incurred after 1 April 2020).
Please contact the R&D team by calling 020 8037 1030 or complete the enquiry form on this page and we will come back to you.
