Enhanced Research and Development Intensive Support (ERIS) Scheme Explained
The ERIS Scheme
The UK government has recently introduced additional R&D support specifically for the country’s most innovative small businesses.
The ERIS scheme offers enhanced tax relief to R&D-intensive companies, helping them maintain vital cash flow while continuing to innovate. Find out how ERIS can benefit your business.
What is the ERIS Scheme?
Launched from 1 April 2024, it is designed for small and medium-sized enterprises (SMEs) that spend a significant proportion of their total costs on R&D.
If your company’s R&D activities make up at least 30% of your total business expenditure, you may qualify for a higher payable credit rate under the ERIS scheme. This can provide a much-needed financial boost to your innovation efforts.
FIND OUT IF YOU'RE ELIGIBLEKey Features of ERIS
- Higher payable credit: R&D-intensive companies can claim a credit worth 14.5% of their qualifying R&D expenditure, even if loss-making.
- Focused eligibility: Only companies meeting the 30% R&D intensity threshold qualify.
- Support for marginal cases: Transitional relief may apply if your business was R&D-intensive in one of the last two periods but just misses the threshold now.
Who is Eligible for the ERIS Scheme?
You could qualify if:
- You are an SME for tax purposes.
- Your qualifying R&D expenditure equals 30% or 40% of your total expenditure.
- You carry out genuine, eligible R&D activities under HMRC’s updated definitions.
- You are a UK-registered company subject to UK Corporation Tax.
Important: If your R&D spend falls slightly below 30%, transitional rules could still make you eligible temporarily.
Important Things to Know About ERIS
- Companies can no longer claim through the RDEC or SME schemes, even if their criteria seems more favourable. If you don’t meet the above criteria, you will need to claim through the Merged R&D Scheme.
- Businesses can also claim the higher rate under the SME scheme if they meet the 40% R&D intensity threshold for expenditure incurred from the 1st of April 2023.
- Eligibility is assessed each accounting period.
- Even if you are a loss-making SME, ERIS provides a generous payable credit to support ongoing innovation.
Failing to correctly assess your R&D intensity could mean missing out on valuable relief.
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BOOK A FREE CONSULTATIONHow Cooden Tax Consulting Can Help
At Cooden Tax Consulting, we specialise in navigating the complexities of the new R&D environment, including ERIS eligibility.
Our services include:
- Assessing your R&D intensity calculation
- Advising whether transitional rules apply to you
- Preparing and submitting compliant, optimised R&D ERIS claims
- Maximising the amount you can claim under ERIS
We make claiming R&D tax relief simple, efficient, and rewarding.
Get Advice from Our ExpertsERIS Scheme FAQs
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What does ERIS stand for?
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How is ‘R&D intensity’ calculated?
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Can I claim ERIS if I don’t meet the 30% threshold?
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What’s the difference between the Merged Scheme and ERIS?
Contact Us Today
If you would like to learn more about the ERIS R&D tax relief scheme, the team at Cooden would be happy to help. We have extensive experience helping businesses get as much out of their tax relief claims as possible – we can do the same for you. You can call us on 01424 225345 or email us at info@coodentaxconsulting.co.uk for more information.
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