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

When you make a claim for research and development, you need to enter figures for information and computation adjustment. You may also need to make a claim to surrender any losses.

You can make the R&D claim in SimpleStep or HMRC Forms mode, as follows. 

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 > Trade and professional income > Losses, Management expenses, NTLRDs and NTLIFAs > 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 creative 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 > Losses, Management expenses, NTLRDs and NTLIFAs > 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.