ERIS intensity checker

You enter the company's relevant R&D expenditure and its total relevant expenditure, with any connected companies' figures and payments to connected companies. The checker works out the intensity percentage, compares it with 30%, and tells you whether the company passes, fails or may meet the grace period. It runs in your browser and stores nothing.

For accounting periods beginning on or after 1 April 2024, a company's relevant R&D expenditure must be at least 30% of its total relevant expenditure. It is one of the conditions for ERIS, alongside being a loss-making SME. The checker shows the percentage and the gap to 30%. It is the number that matters most here.

It was 40% under the old SME scheme, for the 14.5% payable credit. The threshold for ERIS is 30% for periods beginning on or after 1 April 2024. The checker uses 30% and will not give a reliable answer for older periods. We mention the old figure only to explain why older guidance quotes it.

Qualifying R&D expenditure under the rules on what a company can claim, including costs you have not claimed. HMRC's guidance says the qualifying expenditure rules are the same for the merged scheme and ERIS. The checker takes the figure you enter and does not test the costs. Check the figure with your accountant.

The company's total expenditure for the purposes of the test, measured with connected companies' expenditure included, but with payments to connected companies excluded. Enter the figures as accurately as you can and check the definition with an adviser, as the total is where mistakes tend to arise. Mistakes are common here.

Because HMRC's guidance says connected companies' expenditure counts towards the test. The checker therefore asks for connected companies' R&D and total spend for the overlapping periods and adds them to the company's own. That means you may need figures from other group or connected companies, for the periods that overlap with yours.

Because HMRC's guidance excludes them from the total. The checker therefore deducts payments to connected companies from the total before it works out the percentage. Enter those payments separately, so the checker can deduct them from the total before it works out the intensity percentage. If you are unsure whether a payment is to a connected company, check before you rely on the result.

A company can also meet the condition if it met it in its last 12-month period and made a valid SME or ERIS claim on expenditure from 1 April 2023. It can help a company whose intensity has just dipped below 30%. The checker asks whether this applies, and says if it may.

Yes. ERIS is for loss-making, R&D-intensive SMEs. A profit-making SME, or one that is not R&D-intensive, claims under the merged scheme instead. The checker asks whether the company is loss-making and says if the answer rules ERIS out. If the answer is no, the checker says so and points you to the merged scheme and our benefit calculator for an estimate.

A trading loss before the additional ERIS deduction is taken into account. That is, the company would have a loss from its trade even before the extra 86% is applied. Make sure you use the right figure, as profits and losses on the accounts may differ from the tax position.

No. A company that is eligible for ERIS may claim under the merged scheme instead, but not both for the same costs. Which pays more depends on the company's position, and our benefit calculator can compare the two. We can also help you decide. We are happy to compare them for you.

ERIS pays up to about £26.97 per £100 of qualifying costs, where there is a large enough loss to surrender, before the PAYE cap. A merged scheme claim nets about 15% to 16.2% of costs. The higher figure for ERIS has to be weighed against the loss surrendered and the cap.

Then it does not pass on the figures you entered. It may still meet the grace period, or may be able to claim under the merged scheme. The checker shows how far below 30% the company is, in pounds, which can help to see whether a different cost treatment would change the result.

No. It tests intensity and loss-making status only. Whether the company is an SME, including the effect of linked and partner enterprises, needs to be confirmed separately, so speak to us if you are not sure. Do not rely on the checker for the SME question. We can confirm it for you.

Northern Ireland ERIS claimants are exempt from the overseas contractor and externally provided worker restrictions, and may opt out of the Northern Ireland provisions on the additional information form. The checker does not model this. If it affects you, speak to us. It is a specialist area, so please ask us early before you rely on any result.