SME R&D Tax Relief in the UK: what it means now, who qualifies, and how FI Group helps you claim

SME R&D Tax Relief UK in 2025 | Merged Scheme vs ERIS | Eligibility, Costs and HMRC-Ready Claims

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What is SME R&D tax relief as of today?

For accounting periods beginning on or after 1 April 2024, most SMEs claim under the merged R&D Expenditure Credit (RDEC-style) scheme. Loss-making R&D-intensive SMEs may instead claim Enhanced R&D Intensive Support (ERIS). Earlier periods may still use the legacy SME rules.

The merged scheme replaced the old SME and RDEC schemes for most claimants. ERIS remains available to eligible loss-making SMEs. You can only apply one scheme to the same expenditure, so correct treatment is essential.

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What OurClients Say

At FI Group, we take pride in delivering a high-quality, tailored service that helps businesses unlock the full value of R&D tax incentives. But don’t just take our word for it, hear directly from the companies we’ve supported. Their success stories reflect our commitment to accuracy, compliance, and long-term value.

Brad Hilder, Finance Director, Dronamics

By managing the entire process, FI Group significantly reduced the workload on our finance team, allowing us to focus on core activities. The claim was successful, with no issues raised by HMRC, highlighting the thoroughness and accuracy of their work. What stood out was their proactive in-year review process. This approach has meant that we are now months ahead on our next claim.

Michelle Hennessy, Financial Controller, Stablepharma

We are extremely pleased with the R&D tax work carried out by FI Group on behalf of Stablepharma during 2024. Giuseppe and his team were great collaborators and quickly assimilated the necessary data to best showcase our R&D efforts, with excellent attention to detail. This resulted in a much-improved claim for our organisation, which will have an immediate impact on the work we can carry out in 2025. We would highly recommend them to other industry colleagues.

Praveen Sagar, Director and co-founder, OxDevice Ltd.

Giuseppe Amoroso from FI group did our R&D tax claim and successfully submitted on our behalf of OxDevice. Excellent team work in Submitting the claim.

Jenny Young, Head of Business Operations, Mocean

We've had an excellent experience collaborating with FI Group. Their team of consultants demonstrated proficiency in evaluating and comprehending our innovative wave energy technology, leading to a comprehensive technical report that played a significant role in securing our R&D tax credit repayment.

Robin Lumely-Savile, Director, BemOre

The smoothest way to work on R&D Tax Credit – not only are they experts of the subject but also sectors specialists; FI Group could get all the technical elements of our business by themselves leading to a successful and remarkable result.

Jaco Rabie, CFO, Equipsme

Service was fantastic, the claim exceeded our expectations and FI Group were very fair on contract points that I wanted to negotiate on. The original sale person followed the consultancy process throughout every stage to ensure the claim delivery met the expectations agreed from the beginning. We would highly recommend the services of FI Group.

Who qualifies as an SME and who is “R&D-intensive”?

An SME for R&D purposes must meet HMRC’s size criteria. To be R&D-intensive for ERIS, qualifying R&D must be 30% or more of total expenditure, with a one-year grace rule available if intensity falls just below.

Intensity threshold: 30% from April 2024, previously 40%.
Grace period: one-year protection if you were R&D-intensive previously but drop below in the next period.
Groups and connected companies: spending across connected entities is included when testing intensity.

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Who qualifies as an SME and who is “R&D-intensive”?

Intensity threshold: 30% from April 2024, previously 40%.
Grace period: one-year protection if you were R&D-intensive previously but drop below in the next period.
Groups and connected companies: spending across connected entities is included when testing intensity.

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How much could an SME receive?

Under the merged scheme, SMEs receive an above-the-line credit on qualifying spend. Under ERIS, eligible loss-making SMEs can access a 14.5% payable credit on surrenderable losses.

What drives the outcome:

Size of qualifying cost base
Corporation Tax rate and loss position
R&D intensity percentage
Interaction with grants and subsidies
Period-specific subcontracting and overseas rules

Which costs usually qualify?

Typical categories include staff, externally provided workers, subcontracted R&D, consumables, software, and eligible cloud and data. The correct treatment depends on the claim period.

Quick reference list:

Staff and EPWs: salaries, NICs, pensions, EPW charges where eligible
Subcontracted R&D: scope and rates vary by scheme and period
Consumables and prototypes: materials and utilities used up in R&D
Software, cloud and data: when directly used for R&D
We reconcile payroll and ledgers and prepare evidence that matches HMRC’s expectations.

What do I need to file with HMRC?

You must submit an Additional Information Form (AIF) before filing the Company Tax Return. Many first-time or returning claimants must also send a claim notification within set deadlines.

Detail:

AIF: includes standardised narratives, costs by category, and named responsible officers.
Claim notification: required in specific cases, but missing it can prevent you claiming.
We prepare both filings and track acknowledgements so your claim proceeds smoothly.

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What do I need to file with HMRC?

You must submit an Additional Information Form (AIF) before filing the Company Tax Return. Many first-time or returning claimants must also send a claim notification within set deadlines.

Detail:

AIF: includes standardised narratives, costs by category, and named responsible officers.
Claim notification: required in specific cases, but missing it can prevent you claiming.
We prepare both filings and track acknowledgements so your claim proceeds smoothly.

See If You Qualify

International R&D Tax Incentives Guide 2025

Maximise Innovation Funding Across 20+ Countries

R&D tax relief isn’t just local. Governments around the world are competing to reward innovation. Whether you’re expanding internationally or already managing multi-country claims, our 2025 guide is your essential resource for navigating global R&D incentives.

Download your free copy of the International R&D Tax Incentives Guide 2025 and discover which tax credits, deductions, and rebates your business could be missing.

Download the Guide

International R&D Tax Incentives Guide 2025

Maximise Innovation Funding Across 20+ Countries

Download your free copy of the International R&D Tax Incentives Guide 2025 and discover which tax credits, deductions, and rebates your business could be missing.

Download the Guide

Why FI Group for SME R&D Tax Claims

We are a strategic advisory partner with 25+ years’ experience, 18,000+ clients, and £2.2bn+ secured. We prepare audit-ready claims, defend enquiries, and deliver international consistency.

What you get:

Evidence-first drafting and second-pair QA
Eligibility triage and calculators before engagement
International delivery, one accountable lead
Enquiry defence playbooks aligned to HMRC rules

Book a free 25-minute consultation

Why FI Group for SME R&D Tax Claims

What you get:

Evidence-first drafting and second-pair QA
Eligibility triage and calculators before engagement
International delivery, one accountable lead
Enquiry defence playbooks aligned to HMRC rules

Book a free 25-minute consultation

Start ExploringYour FI Journey

Global operations, local compliance

Operate in multiple countries? We deliver Global Reach. Local Expertise. One UK-led partner coordinates incentives across jurisdictions, while local teams handle compliance and filings.

Why CFOs choose this model:

Reduced internal burden and fewer handoffs
Centralised risk management and consistent quality
Faster, predictable claim cycles across the group
Clear governance and audit trail across all entities

Learn More About Global-Local

Global operations, local compliance

Operate in multiple countries? We deliver Global Reach. Local Expertise. One UK-led partner coordinates incentives across jurisdictions, while local teams handle compliance and filings.

Why CFOs choose this model: