R&D Tax Relief Calculator UK 2026/27
Calculate your Research & Development tax credit
R&D Tax Relief helps UK companies recover some of the cost of research and development. The relief can reduce your Corporation Tax bill or provide a cash credit.
Qualifying Activities
- Developing new products, processes, or services
- Improving existing products or processes
- Resolving scientific or technological uncertainties
- Creating something not readily deducible by a competent professional
2026/27 Rates
- SME (profit-making): 86% enhanced deduction + 19% Corp Tax = ~21.5% benefit
- SME (loss-making): 10% payable tax credit
- RDEC: 20% credit, ~15% net after tax
What is R&D Tax Relief?
R&D Tax Relief is a government incentive that rewards UK companies for investing in innovation. It allows companies to claim a tax deduction or credit for qualifying research and development expenditure.
What qualifies as R&D for tax relief?
R&D must seek to achieve an advance in science or technology through resolving scientific or technological uncertainties. This includes developing new products, processes, or services, or improving existing ones.
What is the difference between SME and RDEC schemes?
SME R&D Relief is for small/medium companies (under 500 staff, under €100m turnover or €86m assets) and offers higher rates. RDEC (Research and Development Expenditure Credit) is for large companies and provides an above-the-line credit.
How much R&D Tax Relief can I claim?
SME scheme: Up to 21.5% of qualifying spend as tax relief (or 10% cash credit if loss-making). RDEC: 20% credit (worth about 15% after tax).
What costs can I include in an R&D claim?
Qualifying costs include staff costs (salaries, NI, pension), subcontractor costs (limited %), consumables used in R&D, software, and utilities. Capital expenditure is not included.
SME Scheme
RDEC Scheme