Calculating R&D tax credits

The Research & Development (R&D) tax credits were introduced in 2000 as a way for SMEs to increase the percentage of GDP being spent on R&D from 1.7% to 3%. A separate incentive for large companies, called R&D expenditure credit (RDEC), was established in 2002. Both R&D tax credit programmes have proved incredibly successful, helping UK innovation to thrive. In the two decades following their respective launches, the credits have been continuously supported by different governments, supporting forward-thinking businesses through recessions and, more recently, a global pandemic.