UK R&D Tax Credit Estimator for IT & Tech Firms (2026/2027)
Calculate your HMRC R&D Tax Relief under the Merged RDEC Scheme for software development, engineer salaries, and cloud hosting.
£80,000
100% of staff costs engaged in technical problem solving qualify.£15,000
£25,000
Subcontractor expenditure is eligible at 65% under HMRC R&D rules.R&D Tax Relief Estimate
Qualifying R&D Expenditure:£111,250
Gross RDEC Credit Rate:20.0%
Effective Benefit Rate:15.0%
Corporation Tax Reduction
£16,688
Real-Time Mathematical Audit
Live Step-by-Step R&D Tax Credit Walkthrough
Line-by-line proof under HMRC's Merged RDEC Scheme rules.
Step 1: Qualifying R&D ExpenditureCosts Calculated
Developer Staff Salaries (100%): £80,000
Cloud Computing (AWS/Azure): £15,000
UK Subcontractors (65% Rate): £16,250
Total Qualifying R&D Base: £111,250
Step 2: Merged RDEC Credit (20%)20% Gross Credit
Gross RDEC Credit (20%): £22,250
Scheme Status: Merged RDEC (Statutory 2026/27)
💡 Gross credit is subject to Corporation Tax.
Step 3: Company Tax Profile15.0% Net Benefit
Company Tax Status: Profitable Business
Effective Benefit Rate: 15.0%
Step 4: Final Net HMRC Tax BenefitBenefit Verified
Net R&D Benefit: £16,688
Form Required: Mandatory HMRC AIF Form
💡 Received as Corporation Tax reduction.
UK R&D Tax Scheme Rates (2026/2027)
| R&D Scheme Name | Gross Credit Rate | Net Benefit (Profitable) | Net Benefit (Loss-Making) |
|---|---|---|---|
| Merged RDEC Scheme | 20.0% | 15.0% CT Reduction | 16.2% Cash Refund |
Knowledge Base
Frequently Asked Questions (UK R&D Tax Relief)
Qualifying software activities include resolving non-trivial technological uncertainties, developing novel algorithms, building custom database architectures, enhancing cybersecurity protocols, and integrating complex APIs where standard off-the-shelf solutions do not exist.
ADVAQ UK Chartered Tax Advisory
Need R&D Claim Preparation & AIF Form Submission?
Our UK technical R&D tax team prepares technical narratives, cost qualification schedules, and submits mandatory AIF forms to HMRC.