Research and Development Tax Credits
I'm trying to understand the details of R&D Tax Credits and have some questions - could anyone help please?
Firstly under the expenditure heading Staff Providers, HMRC say ‘ The staff provider needs to contract with the individual whose services they supply’ – what does this mean exactly? If you have the (pretty common) scenario of a company > agency > service company >service company director, and the director of the service company is the technical expert carrying out work on an R&D project for the main company, can the main company claim this as R&D expenditure?
Secondly if work is subcontracted out can this expenditure be claimed, and if so am I correct in thinking that the amount of the claim is 65% of the expenditure involved (I'm not quite sure of the logic behind 65%, is it half of the 130% large company %?).
Thirdly does the 7.5 million Euro upper limit specifically apply to the SME scheme only?
Fourthly Capital Expenditure. If equipment is bought specifically for the R&D project, can 100% of the expenditure be claimed, but it is not claimed as a CA but instead added to the year’s R&D expenditure (so ends up as part of the 200%/220% claim)? This being with the proviso that when the equipment is sold the balancing charge reduces the R&D expenditure in a future year (and what happens if the equipment sale is in a year when there isn’t any R&D expenditure)?
Finally is there a recommended book on R&D Tax Credits?
Thanks for any help.
- Do you use commercial software for Self Assessment tax returns? 347 11
- HMRC Post 505 6
- CT600 - Credit balance in expenses? 276 9
- Non VAT invoices 189 4
- Time to ditch Sage? 219 2
- Travel is part allowable if combined with personal holiday 187 2
- Client in dispute with Customer over cancellation charge 1,386 32
- Fees 231 1
- Correcting earlier year CT600s 251 5
- ACCA Special Business Resolutions... 218 2
- Form 17 Download 147 1
- Claiming VAT on car lease 556 28
- Small hotel - food for personal use 379 4
- HMRC Information notice 989 24
- Recommendations for online payroll software 277 3
- Accountant Specialization. 388 5
- Accounting Web - What is happening? 1,769 42
- Sage Line 50 176 3
- Off topic slightly - any football fans out there? 198 1
- Can my company contibute more than 40000 to my pension in a tax year? 470 6
- Chart of account segments; Balance sheet vs P&L 761
- Any knowledge of salesorder.com 414
- Could and would anyone here carry out a hot file review of some non statutory audit work please? 365
- Electric Car 299
- S222 Charge 245
- Corporation tax penalties and fines on the CT600 207
- IP trans to holding company 195
- Software to Deal with Amazon and Ebay Sales 185
- AIA 180
- Best way to convert Sage data to VT Transaction+ 178