I am currently completing a tax return for a loss making company. How do I go about surrendering losses in order to claim the R&D credit on the computation?
This is my example using round figures for simplicity. The company has a loss of £70k. The R&D expenditure in the year was £20k.
The enhanced R&D would be £20k x 230% = £50k. Resulting in a tax credit of £7,250 (£50k x 14.5%).
Am I right in saying that £20k losses should be carried forward and £50k will be surrendered in order to get the tax credit. My question is how do I show this on the computation? I am currently using Andica.
Also on the actual CT600 on box 660. Would I put £50k or £20k (using the example above).
If anyone could help with this, I would greatly appreciate it.