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Large Company (RDEC)

500 staff or more and either more than €100 milion turnover or €86 million gross assets. 

12% of Qualifying Expenditure

RDEC is currently calculated as 12% of your company’s qualifying R&D expenditure. (11% up until 31st December 2017).

10% Benefit Net of Tax

The benefit calculated under RDEC contributes towards your company’s profit before tax.


R&D Expenditure Credit (RDEC) replaced the large company scheme in April 2016.  

Qualifying Expenditure

RDEC is calculated as 12% of your company’s qualifying R&D expenditure, but the mechanism for utilising the calculated credit is very different to the SME scheme.

Qualifying costs are similar to those under the SME scheme, but with certain differences. For example, subcontractor costs are classed as qualifying costs under the SME scheme, but are not qualifying under RDEC (except in certain circumstances).

After Tax Benefit

The benefit calculated under RDEC is shown within your income statement and as it is shown above the line, contributes towards your company’s profit before tax. This means that the RDEC benefit is taxable and results in a net benefit to your company of approximately 10%.

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