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Merged R&D Expenditure Credit

Learn about the new single R&D relief scheme

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    For accounting periods starting on or after 1 April 2024, there is a Merged R&D Expenditure Credit scheme replacing the existing RDEC and SME schemes for claiming R&D Tax Credits.

    Does my business qualify?


    The Merged R&D Expenditure Credit scheme is available for large and small businesses that pay UK Corporation Tax and have sought a scientific or technological advance. To achieve this, you must have encountered an uncertainty and then tried to overcome this. A professional in the field can’t easily work out your solution.

    What is the credit rate for the Merged R&D Expenditure Credit scheme?

    Like the old RDEC scheme, the credit rate for the new Merged R&D Expenditure Credit scheme is 20% for eligible R&D activities. This credit is considered trading income and is, therefore, subject to corporation tax.

    What is the difference between the old R&D schemes and the new Merged R&D Expenditure Credit scheme?

    • The scheme has been designed by HMRC to be “a simplified, single RDEC-like scheme for all”.
    • The company conducting the R&D will receive the R&D Expenditure Credit, not the subcontracted company (although the subcontracted company may claim R&D costs for any resulting R&D not connected to the customer’s initial project).
    • There are no longer any restrictions on claiming for subsidised expenditure. Restrictions applied for the old SME scheme but are no longer relevant due to the new subcontracting rules.
    • The list of qualifying bodies for eligible contracted R&D costs, which currently applies to the old RDEC scheme, is no longer relevant so has been removed.
    • Loss-making R&D Intensive SMEs can apply for the Enhanced R&D Intensive Support (ERIS).

    How can Leyton UK help?

    We’re the largest innovation funding consultancy in the UK, so we’re ideally placed to help you navigate the recent changes to R&D Tax Credits. We’ll help your business to seamlessly transition to claiming under the new Merged R&D Expenditure Credit scheme, ensuring you comply with the new rules while maximising your claim.
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      Global Experience

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      Maximise your Claim

      We ensure you are claiming all relevant tax credits and receiving your maximum benefit, thanks to our exclusive expertise in both tax and sciences

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      Save Time

      Submit your documentation with our software which enables us to file your R&D claim as part of your amended CT600 following completion of the R&D claim. Also discover your claim in minutes using our digital platform Leyton For Me powered by Leyton

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      Audit Support

      In the unlikely event of an audit, our tax attorneys (who have 20+ years of experience) provide the legal defense needed.

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      5 Offices across the UK; 280 Employees; 1.1 billions (£) of innovation incentives secured for our clients

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      Team of Experts

      We have a highly qualified team of over 280 specialists on staff to calculate your claim and keep up with the legislation changes.

    Not sure how the changes affect you?

    mail mail Speak to an R&D Tax Credits specialist.