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.
- ACCA practice certificates 38 1
- Accounts submitted to a the charities comission 174 3
- FILING COMPANY ACCOUNTS 1,077 32
- French Excise Duty - Help Please! 155 2
- What would you do in this situation? 674 14
- Dress code 491 13
- What quality paper do you use for correspondence? 513 16
- Project being run jointly 209 3
- Buying Microsoft's Surface Pro 3 316 4
- Companies House 614 9
- not self employed since March 2011 now received a penalty for late tax return for year 2012-13 371 11
- Where to start to get any of jobs in Finance and Accounting Industry 736 9
- How much did you pay for your website 1,449 25
- Help Required 428 10
- directors control and tax problems 310 5
- Fastest Software 808 13
- What's in a name ? 405 5
- Straightforward email correspondence or PDF letter attached to blank email? 319 4
- Bulk Invoicing 195 6
- Travel and Substinance expenses while abroad 190 3
- CTA study material 715
- Anyone have clients that use Pay4Later to offer customers credit? 439
- Employment related securities question 275
- Recommendations for Ross Martin Tax consultancy 2014 258
- AIM Stocks and IHT 253
- Raiders of the Lost Tax File 229
- Tax Relief for overseas employees 216
- Expat pension contributions? 204
- Trust for Employee 202
- Quickbooks losing VAT return data 184