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R & D Claim


R&D claim received from HMRC for SMEs is not taxable and will use to reduce current year tax liability. What if the claim amount is more than current year tax liabilities? 



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By Jdopus
07th Dec 2018 09:09

You can either choose to carry the additional losses forward to future tax years where you can offset it against future profits at a rate of 19% or you can choose to cash in your losses for a repayable tax credit equal to 14.5% of the total losses you've created.

Thanks (1)
07th Dec 2018 09:29

ok thanks what about that 14.5% received. Is it taxable? how to treat it?

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to ayaz786ahmd
07th Dec 2018 10:10

Dr CT (BS)
Cr Tax (P&L)

Dr Bank
Cr CT (BS)

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