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R&D tax credit

R&D credit larger than the companies profit

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Hi All,

A company has trading profits for the year of £50k, but an R&B claim totalling £70k - so overall there is no corporation tax to pay - but, what happens to the addition 20k is this just retained to carry forward or can a tax credit at 14.5% be applied to the £20k to obtain a rebate?

Any help appreciated, I'm going cross eyed with this!! Thank you

Replies (5)

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By Accountant A
30th Oct 2017 18:09

I find the HMRC guidance on the topic very helpful. It answers any questions I've ever had.

Thanks (1)
By andy.partridge
30th Oct 2017 18:29

it's a scientific fact that you will get more response if you don't post as 'anonymous'. A bit like when you supply a nice photo on

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Man of Kent
By Kent accountant
30th Oct 2017 19:00

You can offset against other profits (last year/next year) or claim a rebate.

Does the business need the cash from an R&D claim? If not the tax relief is greater if used to reduce taxable profits in the prior or future years.

Thanks (1)
By gilderda
31st Oct 2017 16:58

I'm not particularly fond of these R&B claims and the way people Usher them in.

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Replying to gilderda:
By Ruddles
31st Oct 2017 17:10

Well, if you can't help the OP with their query I'm sure that Chaka Khan.

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