R&D Tax Credits Calculator
Estimate your potential UK Research & Development tax relief instantly. Understand your eligibility and calculate potential cash credits or tax savings.
Estimate Your R&D Claim
Use our calculator to get a preliminary estimate of your R&D tax relief. Figures are based on current HMRC rates (post-April 2023) and assume all costs are fully qualifying.
R&D Relief Estimator
Enter your company details and eligible expenditure.
Current HMRC Rates (Post-April 2023)
How the calculation works
The R&D Claim Process
Successfully claiming R&D tax relief requires careful preparation of both financial data and technical narratives to satisfy HMRC’s stringent requirements.
Identify Qualifying Projects
Review your company’s activities over the last two accounting periods. A project qualifies if it seeks to achieve an advance in science or technology by resolving uncertainties that a competent professional could not easily solve.
Calculate Eligible Costs
Gather financial records to identify qualifying expenditure. This typically includes staff PAYE/NI, subcontractor fees, software licenses, and consumable materials directly used in the R&D activities.
Prepare the Technical Narrative
HMRC requires a detailed report explaining the scientific or technological uncertainties faced, the baseline knowledge, and how your project advanced the field. This is often the most scrutinised part of the claim.
Submit via Company Tax Return (CT600)
The financial claim is submitted as part of your Corporation Tax return. Since 2023, an additional form (the Additional Information Form) must be submitted digitally to HMRC before or at the same time as the CT600.
Common Claim Mistakes
Avoid these HMRC red flags
Qualifying R&D Costs
A general guide to the types of expenditure that HMRC typically accepts as qualifying for R&D tax relief.
| Cost Category | Qualifies? | Description & Limits |
|---|---|---|
| Staffing Costs | Yes | Gross salary, Employer NICs, and pension contributions for staff directly and actively engaged in the R&D project. |
| Subcontractors & EWWs | Partially | SMEs can claim 65% of relevant payments. Under RDEC, only payments to qualifying bodies (e.g., universities, charities) or individuals usually qualify. |
| Software & Licences | Yes | Software used directly in the R&D activity (e.g., CAD software, specialised simulation tools). General office software does not qualify. |
| Consumables & Materials | Yes | Water, fuel, power, and materials that are transformed or consumed in the R&D process. (Note: If the resulting product is sold, the material cost may need to be offset). |
| Clinical Trial Volunteers | Yes | Payments made to volunteers participating in clinical trials related to the R&D project. |
| Capital Expenditure (Land/Buildings) | No | The cost of land or buildings does not qualify. However, plant and machinery used directly in R&D may qualify for separate R&D Capital Allowances. |
R&D Tax Credits FAQ
Answers to the most frequently asked questions about UK R&D tax relief, eligibility, and the claiming process.
HMRC defines R&D as work that seeks to achieve an advance in science or technology. This involves resolving scientific or technological uncertainties that a competent professional in the field could not easily solve. It applies to developing new products, processes, or services, or significantly improving existing ones.
Yes. Under the SME scheme, loss-making companies can surrender their losses for a payable cash credit. As of April 2023, this rate is 10% of the qualifying R&D expenditure. Alternatively, losses can be carried forward to offset against future profits.
The SME scheme is for companies with fewer than 500 staff and either a turnover under €100m or a balance sheet under €86m. RDEC (Research and Development Expenditure Credit) is primarily for large companies, or SMEs that have been subcontracted to do R&D by a large company, or those claiming certain grants. RDEC is treated as taxable income, resulting in a net benefit of around 15%.
You can generally claim R&D tax relief for the last two accounting periods. If you have not claimed before, you can amend your previous two Company Tax Returns (CT600) to include the R&D expenditure, provided the deadline for amending those returns has not passed.