Research & Development (R&D) Tax Relief Calculator
✓ Verified for 2026/27R&D Expenditure
£
Company Profit/Loss Status
Net Tax Relief Value
£15,000
15% net R&D benefit
Gross R&D Claim
£20,000
expenditure credit
Net R&D Project Cost
£85,000
after tax credits
Actual Expenditure
£100,000
qualifying spend
R&D Relief Breakdown
Net Cost to Company
£85,000
R&D Relief Value
£15,000
Gross R&D Spend
£100,000
Net Cost
85%
Relief
15%
Under the merged R&D scheme, companies receive a 20% Gross Expenditure Credit (RDEC). SME Intensive R&D companies (where R&D costs are 30% or more of total costs) receive an 86% enhancement deduction or 14.5% cash credit for losses.
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Verified for R&D Tax Rules (2026/27)
Fact-checked and audited against official HMRC legislation and statutory tables by the Tax Calculators for UK Editorial Desk.
Fact-checked and audited against official HMRC legislation and statutory tables by the Tax Calculators for UK Editorial Desk.
Step-by-Step Claim Breakdown
- Identify Qualifying Spend: Sum your staff payroll (including gross salary, NI, and pension matches), subcontractor fees, software licenses, and consumables directly consumed in solving technological uncertainties.
- Apply Scheme Rules: Under the Merged Scheme, calculate a 20% gross credit. For SME-intensive startups, apply the 86% enhancement multiplier.
- Deduct Tax Offset: Subtract the gross credit or enhancement from your tax liability to offset Corporation Tax. If in a loss-making intensive SME status, exchange the credits for a 14.5% tax refund cash payment.
Qualifying Criteria (HMRC Guidelines)
To qualify for R&D tax credits in the UK, your project must aim to achieve an advance in science or technology by resolving a scientific or technological uncertainty. The solution must not be easily deducible by a competent professional in the field.
Verified for Accuracy (2026/27 Tax Year)
Fact-checked and audited by David Vance, CTA FCA, Chartered Tax Advisor & Accountant. Verified against official HMRC rules.How We Calculated This
- Input variables: Enter the relevant amounts, rates, or percentages in the form.
- Real-time breakdown: The calculator applies HMRC rules and thresholds for the 2026/27 tax year to process the values.
- Display outputs: The visual graphs, donut charts, and tables are compiled dynamically to show your net take-home and deductions.
Real-World Examples
Standard Scenario
A basic calculation applying standard UK tax bands and allowances.
Calculation runs based on standard HMRC rules.
With Pension or Deductions
Factoring in a percentage of salary sacrifice or pension contributions.
Deductions are calculated and adjusted accordingly.