The R&D tax credit scheme has undergone significant changes over the years. See a list of key reforms & changes from 2000 to the present.

Merged R&D scheme commences
For accounting periods starting on or after 1 April 2024, the old SME scheme and RDEC scheme merge into a single Merged RDEC. This unified scheme adopts an above-the-line credit structure and includes new rules on subcontracting, overseas R&D, and subsidised costs.

ERIS introduced for R&D-intensive SMEs
The term ERIS (Enhanced R&D Intensive Support) is formally adopted for loss-making, R&D-intensive SMEs (≥30% of costs on R&D), offering a higher payable credit rate than the standard Merged RDEC scheme.
- Potentially up to 27% back on qualifying costs, depending on trading losses.
- Lower threshold of 30% R&D intensity (replacing the previous 40%).
HMRC anti-fraud taskforce expanded
In response to rising concerns about inaccurate and fraudulent R&D claims, HMRC announces increased funding and personnel dedicated to scrutinising claims more thoroughly.

R&D-intensive SME relief
A higher payable credit rate (14.5%) is introduced for loss-making SMEs with at least 40% of total expenditure on R&D. (Often informally called ERIS, but the official name applies only from April 2024.)
AIF & CNF officially announced
The Chancellor confirms the upcoming requirements for an Additional Information Form (AIF) and a Claim Notification Form (CNF) , aimed at increasing transparency and reducing fraud.
HMRC also highlights a continued commitment to tackling non-compliant claims through expanded compliance checks.
Merged R&D scheme proposed
Alongside the AIF & CNF announcements, the government outlines plans to unify the SME and RDEC schemes into a single, simplified R&D scheme from 1 April 2024. A formal consultation is launched to refine details and reduce fraud.
Additional information form required
All claimants must submit an AIF with detailed technical and financial information about their R&D activities, as mandated by HMRC.
Claim notification form
Companies new to R&D claims (or those who haven’t claimed in 3 years) must now submit a Claim Notification Form (CNF) within 6 months of their accounting period end to confirm their intent to claim R&D tax relief.
Major R&D rate changes announced
The government unveils significant changes to R&D tax relief for both SMEs and large companies. These changes set the foundation for reforms taking effect in 2023 and beyond.
- SME additional deduction rate drops from 130% to 86%.
- SME payable credit rate drops from 14.5% to 10%.
- RDEC rate increases from 13% to 20%.
RDEC rate increased to 13%
The third incremental boost to RDEC, further encouraging large companies (and some SMEs) to invest in innovation.
CT600 & computation made mandatory
HMRC tightens processes, requiring standardized computations and electronic filing for R&D claims.
RDEC rate increased to 12%
This second incremental boost to RDEC raises the net benefit for large-company claims.
Large company super deduction abolished
After running in parallel with RDEC for two years, the older “super deduction” ends, forcing large companies onto RDEC.
SME enhancement rate from 125% to 130%
Profit-making SMEs gain a marginal increase in benefit; loss-makers see a slightly higher payable credit maximum.
RDEC rate increased to 11%
Large companies (and some SMEs using RDEC) get a higher net benefit, up from 10% previously.
SME payable credit rate jumps to 14.5%
A significant uplift for loss-making SMEs (from 11% to 14.5%), raising their maximum benefit to ~32.63%.
RDEC incentive introduced
Research and Development Expenditure Credit (RDEC) is launched, eventually replacing the Large Company Scheme.
SME scheme minimum spend removed
SMEs are no longer required to exceed a fixed R&D expenditure threshold to qualify.
R&D tax relief for large companies introduced
Often referred to as the “Large Company Scheme,” laying groundwork for future RDEC.
R&D tax credits launched for SMEs
The first SME scheme is introduced, requiring a minimum spend of £25,000 per accounting period.
Original R&D guidelines published
HMRC publishes the first official guidance on the definition of “research and development” for tax purposes.