What schemes are available to me?

The UK’s R&D Expenditure Credit (RDEC) scheme is now the foundation of the merged R&D tax relief system, making it the default for most companies. Originally designed for large businesses, it also applied to SMEs under certain conditions. Offering an above-the-line credit, RDEC boosts EBITDA, enhances investor visibility, and provides a clear view of innovation value. Learn how the scheme works, its historic role, and what it means for businesses moving forward.

The Enhanced R&D Intensive Support (ERIS) scheme provides greater relief for loss-making SMEs that invest heavily in innovation. Introduced within the merged R&D regime, ERIS ensures early-stage and high-risk businesses aren’t disadvantaged for lacking profitability. By linking support to qualifying R&D spend, it protects vital projects during their most vulnerable phases, helping ambitious companies continue driving innovation when it matters most.

For over 20 years, the SME R&D tax credit scheme enabled UK businesses to recover significant R&D costs as tax credits or cash. Though closed to new accounting periods from April 2024, it remains open for historic claims. Projects had to show advances in science or technology, with eligibility spanning diverse sectors. Today, most businesses claim under the merged scheme, while R&D-intensive SMEs may benefit from enhanced support through ERIS.

The Patent Box regime enables UK companies to reduce corporation tax on profits from patented products or processes, lowering the rate to as little as 10%. By electing into the scheme, businesses can benefit from holding intellectual property in the UK while driving innovation. Closely linked with R&D tax relief, it rewards investment in developing and commercialising new technologies.