A lot of founders and finance leads are asking this right now. But I'd start one step earlier:
Do you actually know which R&D regime your claim sits in?
For accounting periods beginning on or after 1 April 2024, you're generally in one of two places:
- The merged scheme, or
- ERIS (Enhanced R&D Intensive Support) for loss-making, R&D-intensive SMEs
That distinction matters because it changes the economics of the claim - and the way you should think about eligibility.
Most Businesses Default to the Merged Scheme
If you're not loss-making and R&D-intensive, you won't be in ERIS. The merged scheme is where most companies will land.
That doesn't mean your claim is "automatic". It still needs to be coherent and supportable - especially when the narrative, costs and evidence have to line up.
ERIS Is More Generous, But It's Not for Everyone
ERIS is only available if you are a loss-making R&D-intensive SME. The intensity condition is the key test: broadly, your relevant R&D spend needs to be at least 30% of total relevant expenditure (including connected companies).
And there is a one-year grace period in some cases - which means you don't want to guess. You want to calculate it properly.
The Better Question to Ask
Not "which one pays more?" But:
Which one genuinely applies to our business - and can we support that position if asked?
Because small classification errors (or fuzzy cost treatment) don't just change the number. They change the framework you're claiming under.
If you're considering an R&D claim and you're not 100% sure whether ERIS applies, we're happy to talk it through before you submit.
