Welcome to Counting King

Our R&D Tax
Credits Calculator

Is at your disposal

Do you have more than 500 employees and turnover exceeding €100,000,000?

No

How much have you spent on R&D?

£10,000

What was your profit the same year?

£0

Our upfront fee

Always £0

You could receive a tax credit of

£1,885

Please note: This calculator is intended as a rough guide.

Take advantage of our easy to use R&D Tax Credits Calculator and learn more about your potential beenfit!

SME R&D Tax Credit Calculator

Most companies will fall under the SME bracket however, the calculation will vary depending on whether you are a profit or a loss-making company. Use our R&D Tax Credits Calculator for a quick and easy estimate. Here’s more of what you need to know about the SME incentive:

  • If you are a profit-making company, you will see your benefit in the form of reduction to your Corporate Tax bill. The rate for this is 25%.
  • For a loss-making company, you will receive the benefit in the form of a cash rebate as you don’t have a tax liability to offset.

RDEC R&D Tax Credit Calculator

Predominantly large companies fall under the RDEC (Research and Development Expenditure Credit) branch of the incentive. However, the RDEC incentive is still available for SMEs who are unable to claim through the traditional SME route. 

  • RDEC claims are paid as a taxable credit which equates to 13% of your eligible R&D costs. The net cash benefit after tax is 11%.
  • The tax benefit can be utilised to reduce to reduce your corporation tax bill or in loss-making scenarios, you will receive a cash credit from HMRC. 

How to calculate your R&D Tax Credit Claim?

As a simplified example; if a SME had developers working exclusively on an eligible R&D projects and paid them a total of £150,000 per year, they could use the incentive to record the expensive at £345,000 (230%x£150,000). The additional £195,000 of the expenses would mean the company’s taxable profit would be reduced. 

The calculation shows how this affects a profitable company; £29,625 from corporation tax savings and the payable tax credit. In total they would receive back 19.75% of their R&D investment. If you are not eligible to claim the relief as an SME, you might still be able to claim under the RDEC incentive. 

or just use our free calculator!

Calculator infographic R&D

R&D Tax Credits Calculation for SME

Profit / (Loss) before claim

£30,000

R&D qualifying spend

£150,000

R&D enhanced deduction

£195,000

Profit / (Loss) after claim

(£165,000)

Corporation tax saved

£5,700

Potential payable tax credit

£5,700

£29,625 potential payment from HMRC.