R&D or Creative Industry Relief and tax credits section (CT600)

This section is used to claim Research & Development relief, Film Relief or R&D/Film tax credits. Only companies based in the UK, that pay corporation tax, are eligible to apply for Research and Development (R&D) tax credits.

There are two schemes for R&D tax relief. One is for SMEs and the other is for Large Companies.

For further explanation on claiming Research and Development Expenditure Credit read the following article: https://www.taxadvisermagazine.com/article/taking-credit

Refer to the HMRC Corporation Tax form for Company Tax (CT600) guidance if needed (opens in a new tab).

  1. Open the required tax return, then select the Data input tab.

  2. If the required section is listed, select it and skip the next step. If not, select Add a new section.

  1. On Choose a section to add, under Deductions & reliefs, select R&D or Creative Industry Relief and tax credits.

    If the section is crossed through, it has already been added to the tax return. To adjust it the existing values, close the window and select the section on the Data Input tab.

  1. The section has 3 tabs. Complete as follows, then select Save changes.

Enhanced expenditure tab

This tab is used to enter enhanced expenditure totals and Creative Industry Tax Credit.

Enhanced expenditure must also be entered on the adjustments to trade profit section of the tax return.

R&D and Creative Industry Relief enhanced expenditure

Creative Industry Tax Credit

R & D Tax Credit tab

This tab is used to calculate the R&D Tax Credit.

Override calculated tax credit

You can override the calculated tax credit. If this is done, the computation will not show the calculation derived from the section above. You will need to attach a computation of the tax credit to the tax return.

  • Override calculated tax credit? – select to override the calculated tax credit.

  • Losses surrendered for R&D tax credit – enter the losses surrendered.

  • R&D tax credit – enter the R&D tax credit that is claimed.

Above The Line R&D Tax Credit tab

This tab provides calculation of the Research and Development Expenditure Credit (RDEC), also known as Above The Line Tax Credit.

RDEC and the current large company scheme co-exist until 31 March 2016, after which time the existing large company scheme will only continue for expenditure incurred prior to that date until such expenditure is treated as deductible in a CT computation. Once a company has claimed RDEC for the first time, it has effectively elected into RDEC and the election is irrevocable.

SMEs will be able to claim the RDEC in the same circumstances as they can currently claim under the existing large company scheme. As with loss making large companies SMEs will now be able to claim a payable credit under the RDEC subject to certain restrictions and set offs on such claims.

Above The Line R7D expenditure credit

Ensure you select box ‘Claim Above The Line Research & Development Expenditure credit. Additional fields need to be completed. Enter the value for PAYE and Class 1 NIC liabilities for the period as this determines the cap on the claim.

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