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How do I enter R&D expenditure on my CT600?

Article ID: 918
Last updated: 21 Mar, 2019

When you make a claim for research and development, you need to enter figures for information and computation adjustment. You can do this in SimpleStep or HMRC Forms mode, as follows. You may also need to make a claim to surrender any losses.

CT600 2015 form

SimpleStep mode

  1. Go to CT600 Core> CAs and Enhanced Expenditure > Enhanced expenditure.
  2. Complete the entries on screen as required.
  3. Tick either box 650 (SME) or box 655 (large).
  4. Enter the expenditure in box 660  full relief amount (230% for SMEs/130% for large companies) - use the wizard to assist with these calculations.

Computational adjustment

This is the difference between the 100% that you claimed in your accounts as the expense and the applicable percentage rate (130%/30%).

  1. Go to CT600 Core > Trade and professional income > Tax adjusted profit/loss  other adjustments.
  2. Enter the figure for Research and development to adjust the profit chargeable to tax as required. - if you used the wizard previously, then this will be populated automatically)

Surrendering the loss

  1. Go to CT600 full > Trade and professional income > Trading losses record.
  2. Enter the figure for Loss Surrendered for R & D tax credit.

Claiming repayment for the credit

  1. Go to Overpayments and repayments > Repayments for the period
  2. Enter the amount of the tax credit in box 875

HMRC Forms mode

  1. Go to CT600 > Core > Page 7.
  2. Complete the section for R&D or films enhanced expenditure.
  3. Tick either box 650 (SME) or box 655 (large).
  4. Enter the expenditure in box 660  full relief amount (230%/130%).

Computational adjustment

This is the difference between the 100% that you claimed in your accounts as the expense and the applicable percentage rate (130%/30%).

  1. Go to CT600 > Computations > Tax adjusted profit/loss – other adjustments.
  2. Enter the figure for Research and development to adjust the profit chargeable to tax as required.

Surrendering the loss

  1. Go to CT600 > Computations > Trading losses record.
  2. Enter the Loss surrendered for R & D tax Credit.

Claiming repayment for the credit

  1. Go to CT600 Core > Page 10 > Repayments for the period covered by this return
  2. Enter the amount of the tax credit in box 875

CT600 2008 form

SimpleStep mode

  1. Go to CT600 full > CAs and Enhanced Expenditure > R&D enhanced expenditure.
  2. Complete the entries on screen as required.
  3. Tick either box 99 (SME) or box 100 (large).
  4. Enter the expenditure in box 101  full relief amount (230%/130%).

Computational adjustment

This is the difference between the 100% that you claimed in your accounts as the expense and the applicable percentage rate (130%/30%).

  1. Go to CT600 full > Trade and professional income > Tax adjusted profit/loss other adjustments.
  2. Enter the figure for Research and development to adjust the profit chargeable to tax as required. 

Surrendering the loss

  1. Go to CT600 full > Trade and professional income > Trading losses record.
  2. Enter the figure for Loss surrendered for R & D tax credit.

HMRC Forms mode

  1. Go to CT600 > Full > Page 6.
  2. Complete the section for R&D or films enhanced expenditure.
  3. Tick either box 99 (SME) or box 100 (large).
  4. Enter the expenditure in box 101  full relief amount (230%/130%).

Computational adjustment

This is the difference between the 100% that you claimed in your accounts as the expense and the applicable percentage rate (130%/30%).

  1. Go to CT600 > Computations > Tax adjusted profit/loss – other adjustments.
  2. Enter the figure for Research and development to adjust the profit chargeable to tax as required.

Surrendering the loss

  1. Go to CT600 > Computations > Trading losses record.
  2. Enter the Loss surrendered for R & D tax Credit.

For further information read Corporation Tax: Research and Development (R&D) Relief on the HMRC website.
 

Enhancement and surrender rates
Period Enhancement Rate Surrender Rate
Before 31/03/2011 175% 14%
01/04/2011 - 31/03/2012 200% 12.5%
01/04/2012 - 31/03/2014 225% 11%
01/04/2014 - 31/03/2015 225% 14.5%
After 01/04/2015 230% 14.5%
Article ID: 918
Last updated: 21 Mar, 2019
Revision: 6
Views: 12159
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Also listed in
folder Tax Return Production -> CT600 Corporation Tax Return