Question 1

What is the merged R&D scheme (RDEC) rate from April 2024?

Accepted Answer

For accounting periods starting on or after 1 April 2024 the merged scheme replaces both the old RDEC (for large companies) and the SME scheme. The RDEC rate is 20% of qualifying expenditure. After deducting 25% CT on the credit, the net benefit is 15% of qualifying expenditure (20% × 75%).

Question 2

What is the ERIS (Enhanced R&D Intensive Support) scheme?

Accepted Answer

ERIS (also called the SME intensive scheme) applies to companies where qualifying R&D expenditure exceeds 30% of total costs. These companies receive a 27% RDEC credit rate (net benefit ~20.25% of QE). Loss-making ERIS companies can receive a payable credit.

Question 3

Can loss-making companies claim RDEC?

Accepted Answer

Yes. Under the merged scheme and ERIS, the credit is a fully payable credit — even loss-making companies can receive the RDEC as a cash payment after setting it against CT liability (if any) and following the step-by-step order prescribed by HMRC.

Question 4

What happened to the old SME additional deduction?

Accepted Answer

The old SME scheme (130% additional deduction, 14.5% payable credit for loss-making companies) was reduced to 86% additional deduction and 10% payable credit from April 2023, before being merged into the single RDEC scheme for periods starting on or after 1 April 2024.

Scheme	Period	Credit / deduction rate	Net benefit (profitable)
Merged RDEC	From 1 Apr 2024	20% of QE	15% of QE
ERIS intensive	From 1 Apr 2024	27% of QE	~20.25% of QE
Legacy SME (2023/24)	Apr 2023 – Mar 2024	86% additional deduction + 10% payable credit (loss)	~21.5% of QE (profitable @ 25%)
Legacy RDEC (large)	Apr 2023 – Mar 2024	13% credit	~9.75% of QE

R&D Expenditure Credit (RDEC) Calculator

RDEC Calculator 2024/25

R&D scheme comparison 2024/25