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.
- ACCA - still making me laugh 407 3
- can anyone recommend Turkish speaking accountants in London 229 1
- Depression - HMRC penalties case won because of this illness. 293 11
- Tax return software for remote working 450 4
- Solicitors now, Accountants next 477 9
- Accountancy practices - are you closed over Christmas or do you let your staff take it off? 781 24
- How come if you claim benefits you are not entitled to you either have to pay a 50% penalty or are sent to court and either fined or sent to prison (sometimes suspended) and end up with a criminal record. 399 9
- WHY AREN'T DWP RULES THE SAME BOTH WAYS ROUND 435 9
- How to purchase business premises? 124 2
- Will I need to resign? 787 10
- Childcare vouchers 136 3
- Base value unavailable re. Capital Gain 266 5
- Management Company Setup Structure as Limited Company 294 6
- VAT avoidance? 205 4
- Can S455 tax repaid 174 3
- PAYE coding out 164 3
- Follower cases 571 2
- LIVE chat, starting now 450 2
- Late Registration for VAT 448 12
- TheTax Donut 1,144 1
- Hive up 467
- Accounting referance change & deficient accounts. 433
- corporate hierarchy 413
- Advice - 241
- Amortisation of Goodwill 211
- Anyone had HMRC refusing to act on EPS database glitch? 197
- WWOOFers 193
- Art Gallery - Splitting a property between business and personal use 173
- Legal Aid Agency claims and VAT 172
- Co. limited by Guarantee now closed 168