by Asim Abbas
11 November 2026 
R&D tax relief in 2026: the merged scheme and ERIS explained
R&D tax relief in 2026: the merged scheme and ERIS explained
R&D tax relief rewards companies that try to resolve scientific or technological uncertainty. The rules were overhauled for accounting periods starting on or after 1 April 2024.
- Merged scheme: 20% taxable credit on qualifying spend
- ERIS for loss-making SMEs with 30% R&D intensity
- First-time claimants must notify within 6 months
- An Additional Information Form is required
Most companies now claim under a single merged scheme, with extra support for loss-making, R&D-intensive SMEs. HMRC has also tightened compliance, with more checks and new filing steps.
This guide explains how the schemes work, what qualifies and how to claim safely.
What counts as R&D
A project qualifies if it seeks an advance in science or technology by resolving uncertainty that a competent professional couldn’t readily resolve. Routine development, cosmetic changes and work in the arts or social sciences don’t qualify.
The two schemes
| Scheme | Who | Benefit |
|---|---|---|
| Merged scheme (RDEC) | Most companies | 20% above-the-line credit, taxable, net value about 15% to 16.2% |
| Enhanced R&D Intensive Support (ERIS) | Loss-making SMEs spending at least 30% of total costs on R&D | 86% extra deduction plus payable credit of 14.5% of losses surrendered |
Corporation tax calculator
See the effect on your bill.
Qualifying costs
- Staff costs of people directly working on R&D
- Externally provided workers
- Subcontractor costs, with rules on who claims
- Consumables, software, data and cloud computing
- Payments to clinical trial volunteers
Overseas costs are now heavily restricted. Most overseas subcontractor and worker costs don’t qualify unless conditions abroad make UK work impossible.
A profitable software company spends £200,000 on qualifying R&D. Under the merged scheme, it gets an expenditure credit of £40,000. The credit is taxable, so at 25% Corporation Tax the net benefit is about £30,000, around 15% of the spend.
Fixed-fee accountancy support
Transparent monthly packages for sole traders, landlords and limited companies. Fixed fees agreed upfront, VAT included.
Get a fixed-fee quoteCall 0161 531 4179Making a claim
- Claim notification: required within six months of the period end for first-time claimants or those who haven’t claimed in the last three years
- Additional Information Form: project details, costs and the competent professional, filed before the CT600
- Time limit: two years from the end of the accounting period
Compliance risk
HMRC opens many enquiries into R&D claims, and penalties apply for inaccurate ones. Be wary of advisers charging high success fees for aggressive claims. Keep technical records of uncertainties and how they were addressed.
See HMRC’s guidance on R&D relief, our Corporation Tax guide and our business tax planning service.
What should I do next?
Technical uncertainty.
Staff, software, cloud.
Within six months if needed.
Frequently Asked Questions
What is the merged R&D scheme?
A single scheme from April 2024 giving a 20% taxable expenditure credit.
What is ERIS?
Enhanced support for loss-making SMEs whose R&D costs are at least 30% of total costs.
Do I need to notify HMRC before claiming?
First-time claimants and those who haven’t claimed recently must notify within six months of the period end.
Can I claim overseas R&D costs?
Mostly no, except in limited circumstances.
How far back can I claim?
Two years from the end of the accounting period.
Need help with this? Wingate Accountants offers fixed-fee online accountancy support across the UK. Call 0161 531 4179 or request a quote at wingateaccountants.co.uk.
About the Author
Asim Abbas
I’m Asim Abbas, founder of Wingate Accountants and a Chartered Certified Accountant. I help sole traders, landlords and directors stay on top of their tax with fixed fees and plain-English advice.
