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.
- Can I take action against my accountant for incompetence? 1,464 38
- Sage valuing foreign bank balances 160 4
- PITA client 176 3
- VAT on sales net of CIS suffered 344 9
- What are options for non CA firm 2,612 56
- Do I need to report this to SOCA 3,301 33
- Has anyone read the implications of the Lisbon treaty? 730 15
- Dividend dates 471 8
- R&D tax credit claim 203 5
- CIS Deductions 267 3
- Estate agent and VAT registration 94 1
- is this fraud? 773 13
- Married woman dies owning marital home 480 5
- first year company tax return for a limited company 1,515 28
- Leaving Flat Rate Scheme for VAT 211 5
- Not a good start no broadband 485 10
- DEATH OF A SHAREHOLDER NO SHAREHOLDER AGREEMENT 173 2
- new software IXBRL and Accounts production? 218 2
- PPR CGT section 222 builds an extension 89 1
- Intrastat triangulation 74 1
- Property exchange - 8-year legal delay following fall-out 595
- Cancelled 344
- SAGE Payroll Data for Import to MS Dynamics AX 330
- Cancelled 281
- Have you staged yet for auto enrolment? 252
- Probiz 239
- VAT on non-profit making clubs (ECJ VS West Dorset Golf Club) 180
- Phishing emails purporting to be from CIPFA? 174
- Car leasing scheme 173
- Is this UK incapacity benefit taxable in UK or Jersey? 151