From April 2024, UK businesses can access enhanced R&D tax relief through the merged RDEC and new ERIS schemes. With generous deductions and credits for R&D-intensive projects, the schemes offer tailored support to fuel innovation and drive growth.
Research and Development (R&D) tax reliefs are designed to support UK companies engaged in innovative science and technology projects. As of April 2024, the R&D Expenditure Credit (RDEC) and the Small and Medium Enterprise (SME) Scheme were merged. The new R&D expenditure credit (RDEC) and enhanced R&D intensive support (ERIS) came into effect for accounting periods beginning on or after 1 April 2024. While the expenditure rules for both are the same, the calculation methods differ.
The merged RDEC scheme is a taxable expenditure credit available to eligible trading companies subject to UK Corporation Tax. Even if a company qualifies for the ERIS, it may choose to claim under the merged scheme instead, but both schemes cannot be claimed for the same expenditure.
Although the calculation and payment processes for the merged RDEC scheme are similar to the previous RDEC scheme, there are some key differences:
The merged RDEC scheme is subject to Corporation Tax, as it is considered trading income.
The ERIS scheme provides additional support for loss-making, R&D-intensive SMEs:
There have also been significant changes regarding the availability of relief for overseas R&D activities, which are now more restricted.
02/01/2025 - More...
The cash basis is now the default for self-employed income reporting. Learn about the key updates, opt-out options, and
02/01/2025 - More...
Capital Gains Tax rates have increased for disposals from 30 October 2024, with further changes ahead. Stay informed on
02/01/2025 - More...
Ensure compliance with HMRC rules when providing company cars. From P46(Car) submissions to benefit reporting, learn
With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!
» Sign up for the Newsletter
» Login