R&D tax relief computations
Client company with year end of 31 December 2011. Let's assume there are R&D costs capitalised of £100k. For the accounting period in question, I start off by taking the £100k costs, splitting this into two periods (3 months to 31/03/11 and then the remainder) and then applying 175% relief to the pre-31/03/11 costs and 200% relief to the post-31/03/11 costs to arrive at the allowable deduction in the adjusted loss computation.
Then, when the surrenderable loss is arrived at (let's say £300k for example), again this is split into pre and post 31/03/11 figures on a days basis and the repayable tax credit is 14% and 12.5% respectively.
Once arriving at the repayable tax credit, if this figure is more than the company's PAYE and NIC liabilities for the year, the repayable credit is restricted to the PAYE and NIC per the payroll.
Does this sound correct? I am, of course, assuming all other conditions and relief within the SME scheme are applicable in this example.
Thanks for any help folks.
- Profit and Loss Account Adjustments 17 1
- Who can wind up a Promissory Trust? 64 2
- Builder Gifted Deposit and capital gains 425 14
- *Urgent pls advise * filing dormant accounts to Companies House 357 16
- Limited Company - Personal Bank Account 406 13
- Website development costs - tax and accounting treatment 190 2
- MAAT signing off ACCA PER? 277 2
- Amazon - digital book sales 184 1
- tax insider 298 4
- Auto-Enrolment 203 3
- Annual subs 167 2
- Statement of Earnings, no P45 151 2
- Expenses paid by director (the owner) 186 2
- Mileage and Self Assessment 160 1
- ICAEW professional subscription and tax implications 228 4
- CGT Relief on Share Sale in LTD company 335 5
- Problems filing paper copies of accounts / computations with HMRC 498 9
- Payroll Manager not reoprting properly 323 7
- Directors remuneration declared after year end PAYE/NIC 609 25
- Advice please on best way forward 449 6
- Skandia using wrong address 1,410
- Nil Rate Band Trust - index linked debt by way of charge over property 721
- Any views 660
- HMRC Employers Diary 493
- International interest certificate 410
- Stamp Duty on share for share exchange 367
- Sale of business 314
- NOVA 224
- IR35 & Managed Service Companies 220
- Advertising services? 218