HMRC Merged RDEC 202620% Gross Credit
Merged R&D Tax Relief Calculator
Calculate your company's R&D tax credit benefit under the HMRC Merged RDEC scheme (20% credit) and R&D Intensive SME rules.
R&D Tax Credit Benefit Estimator
Estimate taxable credit and net cash benefit
£
Net Benefit Result:
Gross 20% RDEC Credit
£20000
Net Cash Benefit to Company
£15000
15% Net RDECComplete Guide to HMRC R&D Tax Relief Reform
Under the Finance Act reforms, HMRC has replaced the separate SME R&D tax relief and RDEC schemes with a single unified Merged R&D Expenditure Credit (RDEC) scheme for accounting periods beginning on or after 1 April 2024.
R&D Scheme Comparison Table
| Scheme Type | Gross Credit Rate | Taxation Treatment | Effective Net Cash Benefit |
|---|---|---|---|
| Merged RDEC Scheme | 20% of qualifying spend | Taxable at CT main rate (25%) | 15% net cash benefit |
| Enhanced R&D Intensive SME | 14.5% payable credit rate | Loss-making SMEs (>80% R&D) | Up to 27% net cash benefit |
Frequently Asked Questions
The Merged R&D Scheme merges the old SME R&D scheme and RDEC into a single unified Research and Development Expenditure Credit (RDEC) offering a 20% gross expenditure credit (effective 15% net benefit after 25% Corporation Tax).
Loss-making SMEs whose qualifying R&D expenditure accounts for at least 80% of their total company expenditure qualify for the Enhanced R&D Intensive SME scheme, offering higher payable tax credits of up to 27%.
Qualifying costs include staff salaries, employer National Insurance and pension contributions, agency staff (65% rate), software licenses, cloud computing, and consumable materials used directly in R&D projects.