From eligibility to claim for UK R&D tax credits: the merged scheme (~16.2%) and ERIS (up to 27% for R&D-intensive SMEs), plus every other UK grant you qualify for.
The merged scheme, ERIS, and other UK grants, all with one application
Free
Eligibility check after you sign up
4 routes
Grants, family offices, angel investors & VCs
The merged scheme returns ~16.2% net on qualifying R&D, ERIS up to 27% for R&D-intensive SMEs, and you can usually claim retrospectively for 2 prior accounting periods.
The founder's guide
What Are R&D Tax Credits?
R&D tax credits are a UK government tax relief, not a grant you apply for in advance. You claim relief on qualifying research and development you've already carried out, through your Corporation Tax return. Loss-making startups can take the benefit as a cash payment from HMRC, which makes it one of the most reliable sources of non-dilutive funding for early-stage tech companies.
Because it's retrospective, R&D relief pairs perfectly with forward-looking grants like Innovate UK: the grant funds the project, the credit recovers cash on the spend. The smartest founders run both, plus SEIS/EIS. Our free check shows you every grant and relief you qualify for at once.
The two schemes
Merged Scheme vs ERIS: Which Rate Applies?
Since April 2024, the old SME and RDEC schemes were merged. Most companies now use the merged scheme; loss-making, R&D-intensive SMEs can use the more generous ERIS.
Feature
Merged Scheme
ERIS (R&D-intensive SMEs)
Who it's forEligibility
Most UK companies, profit or loss-making
Loss-making SMEs spending ≥30% of total costs on R&D
Headline rateOn qualifying spend
✓20% above-the-line credit
✓86% enhanced deduction + 14.5% credit
Typical net benefitAfter tax
~~16.2% of qualifying spend
✓Up to ~27% of qualifying spend
Cash credit if loss-makingPayable credit
✓Yes
✓Yes, at the higher rate
Who and what qualifies
R&D Tax Credit Eligibility & Qualifying Costs
To claim, your project must seek an advance in science or technology by resolving a genuine technical uncertainty, not just build something new to your business.
You're likely eligible if…
You're a UK limited company within the charge to Corporation Tax
You worked to resolve a scientific or technological uncertainty a competent professional couldn't easily solve
The work sought an advance in the field, not just for your own company
You can evidence the uncertainty, the approach, and the people involved
Qualifying costs include…
Staff costs: salaries, employer NIC and pension for R&D staff
Externally provided workers and subcontractors (subject to restrictions)
Consumables: materials, power, water used in R&D
Software, cloud computing and data licences used for R&D
Payments to clinical-trial volunteers
A founder's guide
How to Claim R&D Tax Credits
HMRC has tightened the rules. Get the process and the paperwork right and the claim is straightforward; get it wrong and you risk an enquiry.
Step 1
Identify Your Qualifying Projects
Pinpoint the specific projects where you tackled a technological uncertainty and document the advance you sought. Vague "we built software" descriptions are the fastest route to an HMRC challenge.
Step 2
Calculate Your Qualifying Spend
Apportion staff time, EPWs, subcontractors, consumables, and software/cloud costs to the qualifying work. Decide whether you fall under the merged scheme or ERIS based on your loss position and R&D intensity.
Step 3
Notify HMRC (if required)
First-time claimants, and those who haven't claimed recently, must submit a claim notification to HMRC within 6 months of the end of the accounting period. Miss this window and you lose the claim entirely, so check it early.
Step 4
File the Additional Information Form & CT600
Submit the mandatory Additional Information Form (project descriptions and cost breakdown) before or alongside your Corporation Tax return. HMRC processes most valid claims within weeks, paying loss-making companies a cash credit.
Done-for-you service
Don't want to write it yourself? We build the application for you.
The steps above are the do-it-yourself route. If you would rather hand it off, our grant specialists write, package and manage the whole application for you, working alongside you so the technical detail stays yours while we handle the process.
1ApplyTell us about your startup and the grant you are targeting. It takes a few minutes.
2Chat with a specialistA grant specialist checks your fit, confirms the right programme, and scopes the work with you.
3We build your applicationWe write the narrative, budget and supporting documents to the funder's exact scoring criteria.
4We guide every stageMany grants run in several rounds (assessment, interviews, sometimes multiple phases, then reporting). We handle each step and explain everything as we go.
Transparent, mostly success-based pricingA modest upfront fee to scope and start the work (not always tied to your metrics), plus a success fee based on the grant, the amount awarded, and your business. Every engagement is quoted individually.
Apply and we'll come back with a tailored budget for your specific grant.
Interactive Tool
Check Your UK Grant Eligibility in 30 Seconds
Every UK grant is listed below by default. Tell us your stage and sector to narrow them to the Innovate UK grants, R&D credits, and SEIS/EIS routes that match your startup. Getting matched is 100% free - no fee, no commission, no credit card.
Choose your stage and sector below to see which UK grants you may be eligible for
Want a definitive eligibility report? It's free.
This is a first-pass match based on stage, sector, and geography. Complete the application form and we'll automatically match you with the most relevant grants - including the one you're researching - cross-referencing your technology, IP, team, and traction against every active UK programme. This matching service is completely free: no fee, no commission, no credit card required.
The strongest raises stack multiple non-dilutive programmes. Here are the other UK grants you can apply for, all matched in one free eligibility check.
Under the merged scheme the net benefit is around 16.2% of your qualifying R&D spend. Loss-making, R&D-intensive SMEs claiming via ERIS can receive up to around 27%. On £200K of qualifying spend, that's roughly £32K–£54K, often paid as cash if you're loss-making.
Yes, this is where R&D relief is most valuable. Loss-making companies can surrender losses for a payable cash credit from HMRC rather than waiting for future profits, directly extending your runway.
Yes, but grant-funded expenditure can affect which scheme and rate apply to that portion of spend. The two work well together; just keep grant-funded and self-funded costs clearly separated. A specialist adviser is worth it where grants and claims overlap. See our Innovate UK guide.
Generally up to 2 prior accounting periods. But note the claim notification requirement: first-time and lapsed claimants must notify HMRC within 6 months of the period end, or the claim is lost, so don't wait.
Only where it resolves a genuine technological uncertainty, for example a novel algorithm, architecture, or performance problem with no readily available solution. Routine configuration, standard web/app development, or using existing tools in the normal way does not qualify. HMRC scrutinises software claims closely.
The Full Capital Stack
Grants Are Only Part of the Stack
Innovate UK grants and R&D tax credits cover early-stage R&D, but most UK startups need equity capital to scale. The strongest raises combine grants with SEIS/EIS-qualifying angel or VC investment.
AngelsPartners is the only platform where a founder can access all three capital pathways in one place: grants (this page), debt financing, and 120,000+ equity investors.
Equity funding
UK Angels & VCs
Search a database of SEIS/EIS-active angels, micro-VCs, and funds investing in UK startups. Filter by sector, geography, ticket size, and stage. Direct contact details included - no gatekeepers, no pay-to-pitch.
Venture debt, revenue-based financing, and startup loan programmes - without diluting your cap table. Our AI matches you to a curated lender network based on your revenue, traction, and geography.
