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.
- Taxfiler - SA100 - More efficient? 689 5
- See you all on the other side 727 6
- 12Pay 492 2
- dividends 683 2
- R&D 343 1
- Quarterly Reporting - The Logistics 1,206 17
- Auto enrolment contribution rates 457 3
- How long are you waiting for appeal reply 449 4
- Borrowing money to loan to company 401 1
- Mother as Guarantor for Son's mortgage 562 5
- Seeking a tax case 669 9
- When do we qualify for state pension? 533 4
- Companies house strike off 610 3
- Tax treatment of alterations to property 456 2
- Moving to the cloud 764 9
- Iris open space/doc exchange for SATRs 224 2
- How much to charge for payroll? 925 16
- Unincorporated charity transfer to CIO 225 4
- BTC vs Digita 1,108 29
- Has anyone tried calling HMRC to get tax on dividends put in code? 517 4
- HMRC Joint Filing 570
- Capital Contribution towards a company car 424
- Capital Reduction & Impact on EIS Shares 378
- IRIS and FRS 102 359
- Capitalising Finance Lease 337
- USA help 324
- National Minimum Wage issue on Directors joining a Workplace Pension 324
- Marginal rates of tax 323
- Class 2 NI 309
- Dormant company accounts under FRS 102 300