The Enhanced R&D Intensive Support (ERIS) scheme marks a significant shift in how the UK government supports loss-making SMEs that are driving innovation. Introduced to ensure critical research and development (R&D) activity continues despite financial pressures, ERIS offers increased tax relief for businesses investing heavily in R&D.
Understanding ERIS: what it is and how it supports innovation
ERIS introduces a new level of support for businesses that invest significantly in innovation but don’t yet turn a profit. Delivered through the merged scheme, it ensures that R&D-intensive SMEs aren’t penalised for being early-stage or high-risk.
By aligning relief with the scale of qualifying R&D expenditure, ERIS helps protect ambitious projects during their most financially vulnerable phases – keeping innovation moving when it matters most.
Is your business eligible for Enhanced R&D Intensive Support?
To qualify for Enhanced R&D Intensive Support, your business must meet the definition of an SME for tax purposes (fewer than 500 employees, and either under €86 million in gross assets or under €100 million in turnover) and be in a loss-making position.
You must also be classed as R&D-intensive, with at least 40% of your total expenditure (including any connected companies) being qualifying R&D expenditure for accounting periods beginning on or after April 2023. This R&D intensity threshold drops to 30% from April 2024, with a one-year grace period available for companies that temporarily fall below the threshold but met the threshold in the prior 12 months.
How ERIS differs from standard R&D tax relief
ERIS is a targeted enhancement within the UK’s merged R&D scheme. While most SMEs now claim through the same unified process, ERIS applies a higher rate of relief to businesses that meet the R&D intensity threshold.
This uplift increases the cash benefit available to eligible companies compared to the standard rate offered under the SME part of the merged scheme. The key difference is not in how you claim, but in how much you receive and who qualifies.
How Ayming can help
Working out whether you qualify for ERIS isn’t always simple. The rules are new, the thresholds are detailed and getting it wrong can mean missing out on valuable support. That’s where we come in.
We’ll work with you to understand your activity, calculate your R&D intensity, and make sure your claim is accurate, compliant, and delivers the best possible return.
We’re here to make the complex feel straightforward, so you can focus on the innovation that drives your business forward.
FAQs
What types of R&D activities are covered by Enhanced R&D Intensive Support?
ERIS covers the same types of R&D as standard relief. However, only businesses that meet the R&D intensity and loss-making criteria can access the enhanced support.
How long does the ERIS application process take?
There is no separate application. ERIS is claimed through your Company Tax Return. Timelines depend on HMRC processing and the complexity of your claim.
What are the minimum amounts I can claim under the ERIS scheme?
There is no fixed minimum, but you must meet the R&D intensity threshold based on your total expenditure.
Is there a deadline for applying for ERIS funding?
Yes. Claims must be submitted within two years of the end of the accounting period in which the costs were incurred.
Can I receive ERIS funding alongside other government support schemes?
In some cases, yes. Other funding may affect your ERIS eligibility or the amount you can claim, depending on how it interacts with your R&D activity.
What happens if my ERIS application is rejected?
If you do not meet ERIS criteria, your claim may still be processed under the standard merged scheme, potentially at a lower rate.
Are there any costs involved when applying for ERIS support?
HMRC does not charge to make a claim. If you use a specialist advisor, fees may apply depending on the service.
Still feeling confused? Check our our R&D tax Resource Hub or download our R&D tax 101 guide to find out more!
