We are a limited company and SME (first year trading) who are claiming R&D tax relief for y/e 31st March 2018, preferable paid as cash.
- Our qualifying spend is £219K, so grossed up by 230% gives £504K enhanced expenditure.
- Our trading loss is £227K.
Am I correct in thinking that means our surrenderable loss is restricted to £227K and therefore we can claim a repayment of a maximum of 14.5% of this amount so £33K, rather than £504K x 14.5% = £73K?
- For expenditure incurred on or after 1 April 2015 the amount of the surrenderable loss is the lesser of:
- the amount of the unrelieved trading loss sustained in that period; or
- 230% of the related qualifying R&D expenditure.
All confirmations/corrections much appreciated.