R&D tax credit calculator

Estimate your potential R&D tax relief in minutes

If your business invests in innovation, our R&D tax credit calculator can help you get an instant estimate of what you might be able to claim. Simply enter your R&D spend and a few company details to see a rough figure.
Important: This calculator provides an indicative estimate only. R&D tax relief claims are complex, and accurate calculation depends on identifying qualifying projects and costs in line with HMRC’s definition of R&D. For a precise assessment, you’ll need professional advice.
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Accounting period
Select the start and end date of the accounting period you want to estimate your claim for. You can usually claim for the past two accounting periods.
Unfortunately, more than 2 years have passed since the end date of the period that you have entered. You are unable to submit this claim to HMRC.
Company size
Choose SME if you have fewer than 500 staff and either turnover under €100m or balance sheet under €86m. Otherwise, select Large Company.
Company’s financial position
Select ‘Profit-making’ if your company is paying Corporation Tax for this period. Choose ‘Loss-making’ if your business made a loss before tax.
Estimated spend on R&D
Enter your estimated eligible R&D costs, such as staff time, subcontractors, materials, and software used directly in R&D projects.
Estimated total business expenditure
Your company’s total costs for the accounting period (all spending, not just R&D). This helps determine which scheme rules may apply.
Important Notice

From 1 April 2024, most companies fall under a single R&D tax relief scheme, except loss-making SMEs spending 30% or more of total costs on R&D.
Calculate estimate
According to “Merged scheme” your estimated R&D tax credit is
£000.000
Disclaimer
From 1 April 2024, most companies fall under a single R&D tax relief scheme, except loss-making SMEs spending 30% or more of total costs on R&D.Important Notice

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for background

How the R&D tax credit calculation works

From 1 April 2024, the SME and RDEC schemes were merged into a single R&D tax relief scheme. The benefit your company may receive depends on your profit or loss position:

For profit-making businesses

Relief is given as a reduction in Corporation Tax. Typically worth around 15–20% of your qualifying R&D spend.

For loss-making businesses

You may be able to surrender losses for a payable credit, typically worth around 18–27% of your qualifying R&D spend.

Example

If your business spends £100,000 on qualifying R&D:

  • A profit-making company could save roughly £20,000 in Corporation Tax.
  • A loss-making company could receive up to £27,000 as a cash credit.
Remember: These figures are for illustration only. Actual outcomes vary depending on your financial position, corporation tax rate and how your claim is prepared.
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Solution

Why this calculator is just the starting point

Calculating R&D tax credit claims correctly requires more than just a formula. You must:

  • Identify eligible projects under HMRC’s definition of R&D.
  • Capture qualifying costs such as staff, subcontractors, consumables, and software.
  • Apply the correct methodology based on your accounts and tax position.

That’s why the calculator is only a guide. Our specialist team of chartered tax advisers, engineers, and sector experts ensures claims are robust, maximised and ready for HMRC scrutiny.

Book a free consultation to get a tailored calculation and eligibility review.

Take our free eligibility test
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How to use the calculator

01
Enter your company type and profit/loss position.
02
Input your estimated R&D spend.
03
See your indicative benefit estimate instantly.
04
Book a consultation for an accurate assessment
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How accurate is the calculator?

Our R&D tax credit calculator gives a quick view of the potential scale of relief but cannot replace professional advice.

It does not assess project eligibility
It does not include all possible cost categories
It does not factor in HMRC’s detailed rules or the effect of enquiries

At Kene, we work closely with you to build claims that reflect your true investment in innovation. Every claim includes full HMRC enquiry support as standard.

Full R&D tax credit calculation example

Let’s see how the calculation might look in practice.

Company background:

  • A UK limited company

  • 45 employees

  • Turnover: £8 million

  • Pre-tax profit: £750,000

Step 1: Eligibility

The company carries out R&D projects in product development and meets HMRC’s definition of R&D. Eligible costs identified with the help of an adviser: £200,000.

Step 2: The benefit

Under the merged R&D scheme (from 1 April 2024), profit-making companies typically receive relief worth 15–20% of qualifying spend.

  • Qualifying spend: £200,000

  • Relief rate (approximate): 18%

  • Estimated benefit: £36,000

Step 3: How it works in practice

This benefit is applied as a reduction to the Corporation Tax bill.

  • Pre-tax profit: £750,000

  • Corporation Tax (25% rate): £187,500

  • Tax saving from R&D claim: £36,000

  • New Corporation Tax bill: £151,500

Step 4: The real outcome

£36,000 is released back into the business to reinvest in future R&D, hiring, or growth.

Remember: This example is simplified. The actual calculation depends on your company’s financial position, Corporation Tax rate, and the specific nature of your R&D costs. An adviser ensures the claim is fully compliant and maximised.

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Advice you can trust

We’ve helped businesses like yours unlock millions in R&D tax incentives. Don’t just take our word for it – read our client reviews and see how we can support your growth.

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R&D Tax Credit Calculations – FAQs

How accurate is our R&D tax credit calculator?
The calculator gives an indicative estimate only. It can’t assess whether your projects meet HMRC’s definition of R&D, or capture all eligible costs. For accuracy, a full review with an adviser is essential.
How do you calculate an R&D expense?
Qualifying R&D expenses may include staff costs, subcontractors, materials, software and utilities directly used in R&D projects. Each cost must link to an eligible activity as defined by HMRC. Our team helps identify and apportion these accurately.
Can you show an R&D surrenderable loss calculation?
Yes. If your company is loss-making, you may be able to surrender part of those losses for a payable credit. For example, if you have £100,000 of qualifying R&D spend and make a loss, you could surrender that loss for a credit worth around £18,600–£27,000 depending on your financial position.
What is the difference between SME and RDEC?
Until April 2024, SMEs claimed through the SME scheme and large companies (or SMEs in certain cases) used RDEC. From April 2024 these schemes merged into a single regime. However, understanding the old rules may still be relevant if you’re claiming for earlier accounting periods.
How do I know if I’m eligible for R&D tax credits?

To qualify, your business must:

  • Be a UK limited company subject to Corporation Tax.
  • Have undertaken projects seeking an advance in science or technology.
  • Faced uncertainty in how to achieve that advance.
  • Eligibility depends on your projects, not your sector — but a professional review is the best way to confirm.

Want to know your true claim value? Book your free consultation with one of our R&D specialists and we’ll help you calculate your entitlement accurately, in line with HMRC’s latest rules.

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