Enhanced Research and Development Intensive Support (ERIS) Scheme Explained

Home / R and D Tax Credits / ERIS Scheme

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 ELIGIBLE

Key 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.

What Our Clients Say

    
 
 
       Posted on Google  
   
   Alex Pawle 
 
 
 
  We went through the discovery call process with Simon and his team. We felt well advised through the complexity of R&D tax claims, and would certainly recommend Cooden to other SMEs.
  
 
      Posted on Google  
   
   Craig Coulton 
 
 
 
  Cooden is five stars! Simon and his team stepped in to help our business with a complex R&D tax relief application. Simon’s attention to detail is second to none. His understanding of the nuances of tax law is impressive, and I’ve had the privilege of seeing his reporting first-hand. It’s not often you work with a team that exceeds your expectations, but Cooden has. I’m impressed and you will be too.
  
 
      Posted on Google  
   
   Narciso Baldo 
 
 
 
  Simon and the team at Cooden are fantastic to deal with. Responsive, knowledgeable and friendly, they're expertise and insights in all things R&D have been invaluable to us. Highly recommend.
  
 
      Posted on Google  
   
   Darren Wynn 
 
 
 
  Exceptional expertise and insight! Simon provided invaluable advice during our exploratory call. Their depth of knowledge and clear communication greatly enhanced our understanding. Truly grateful for their guidance
  
 
      Posted on Google  
   
   Dan Frost 
 
 
 
  Excellent advice and support. Simon is clearly highly experienced and knowledgable on all things R&D related.
  
 
      Posted on Google  
   
   Alex Butler 
 
 
 
  I had the pleasure of working with Simon, and I couldn't be more pleased with the exceptional accounting and R&D relief advisory services he provided. Simon's expertise in navigating the complex landscape of R&D relief schemes with HMRC is truly commendable. Simon's deep knowledge and dedication to his work were evident throughout our collaboration. He demonstrated a keen understanding of the intricacies of R&D relief, and his ability to guide us through the process was greatly appreciated!
  
 
      Posted on Google  
   
   Gavin Jones 
 
 
 
  Simon was extremely helpful with our R&D tax claim, would highly recommend you speak to him if you have any concerns.
  
 
      Posted on Google  
   
   Caroline Lloyd 
 
 
 
  Simon and the team at Cooden Tax Consulting are a pleasure to deal with, friendly knowledgable and efficient.  (On behalf of iPrescribe Exercise Digital Ltd)
  
 
      Posted on Google  
   
   Jack Maddalena 
 
 
 
  I have had a great experience working with Simon and his team at Cooden Tax Consulting. We have used them multiple times, highly recommended, friendly experts.
  
 
  
  
 
 
   Google rating score: 5.0 of 5, based on 15 reviews

Book a FREE 15 Minute Call

We’ve found that an initial 15-minute phone call is normally sufficient for us to determine whether there is some potential in a project. Choose a date and time to schedule in your free, no obligation call with our experts.

BOOK A FREE CONSULTATION

How 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 Experts

ERIS Scheme FAQs

What does ERIS stand for?: ERIS stands for Enhanced Research and Development Intensive Support, a special form of R&D tax relief for innovation-driven SMEs.
How is ‘R&D intensity’ calculated?: R&D intensity is calculated by dividing your qualifying R&D expenditure by your total company expenditure, then multiplying by 100 to get a percentage.
Can I claim ERIS if I don’t meet the 30% threshold?: If your business met the 30% requirement in one of the previous two periods, you may still be able to claim ERIS temporarily under transitional rules.
What’s the difference between the Merged Scheme and ERIS?: The Merged R&D Scheme applies to most businesses. ERIS offers extra support to SMEs with very high R&D activity, providing a higher credit rate even if they are loss-making.

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.