UK R&D tax credits (merged scheme + ERIS)
A corporation-tax relief that lets UK companies claim back a portion of money spent on qualifying research and development — software, engineering, scientific or technical problem-solving — either as a reduction in tax owed or, for loss-makers, a payable cash credit.
At a glance
Accounting- Why it matters
- UK statutory
- Related
- 3 terms
- Walkthroughs
- 3 guides
- Watch out
- Common misconception below
Plain English. UK spelling. No marketing filler.
Why this matters
For UK SMEs that genuinely do technical or scientific work, R&D tax credits are the single most valuable HMRC relief available — a typical claim is 5-figure to low 6-figure cash back. 30% of SMEs in the latest UK Budget survey named innovation and investment incentives as a top policy priority, and the merged scheme that replaced the old SME and RDEC schemes (for accounting periods starting on or after 1 April 2024) changed both the rate and the rules. Most small companies that qualify do not claim, and many that claim leave money on the table because the eligible expenditure is buried across the year’s books.
How YionStack handles it
The accounting module is where qualifying R&D expenditure lives — staff costs (apportioned by R&D time), subcontractor invoices, software licences used in the project, consumables, externally-provided workers. Tagging these expenses through the year (a custom field on the expense, a tag on a project) means the year-end claim is a query, not an archaeology project. YionStack does not file the R&D claim — the claim attaches to the CT600 corporation tax return and most SMEs use a specialist adviser to write the technical narrative HMRC now requires (the Additional Information Form). What YionStack does is make the expense data extractable, traceable, and tied to the projects + payroll runs the claim ultimately depends on.
Common misconception
It is not just for tech companies
HMRC’s R&D definition is broader than it sounds — any company resolving a real scientific or technological uncertainty for which a competent professional cannot easily find the answer can qualify. Construction firms developing new methods, manufacturers re-engineering processes, food producers solving formulation problems, software-using businesses customising open-source for non-obvious uses — all have valid claims. The test is the uncertainty and the systematic attempt to resolve it, not the industry.
Walk me through it
The whole UK Business Operating System.
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