UK tax forms

Research and development

This section is designed to analyse tax relevant information relating to available Research and development (R&D) reliefs. There are two different types of R&D relief, depending on the size of your company:
  • R&D Relief: For small and medium sized enterprises (SME)
  • Research and Development Expenditure Credit (RDEC): For SMEs and larger companies
Because of different workflows supporting those reliefs in the calculation, they are described separately in this topic.
CT600L
 is the supplementary page for research and development related values. This sheet summarises information relating to research and development, showing the expenditure incurred and allowances which have been utilised by the company. This is a review sheet. You cannot perform any analysis on it, as it is populated automatically from the other supporting sheets.

Small and Medium Sized Enterprises (SME) R&D Relief

You can claim SME R&D relief if you are an SME meeting all HMRC criteria.
R&D enhanced expenditure (SME)
Use this sheet to add expenditure qualifying for the relief. It is possible here to allocate expenditure items to a relevant business or / and R&D project. This sheet is optional.
R&D project (SME)
Use this sheet to help track expenditure allocated to individual R&D projects on
R&D enhanced expenditure (SME)
. This sheet will also provide a questionnaire that helps in identifying whether the project qualifies for the relief. This sheet is optional..
Payable tax credits
Use this sheet to analyse available tax credits and surrenderable losses applicable to various tax reliefs. This sheet is required to be developed together with the
R&D enhanced expenditure (SME)
 sheet.
Relevant PAYE references
Use this sheet to add details of your company’s employer PAYE reference and that of any connected companies
Completing the Sheets
Where you have identified amounts you want to be treated as
Qualifying R&D expenditure (SME)
 within the
Income statement
, you should analyse them from the
Expense and income analysis
 sheet in which they arose. Select
Qualifying R&D expenditure (SME)
 from the
Analysed as
 dropdown list on the row, and develop the
R&D enhanced expenditure (SME)
 sheet by selecting
Insert sheet
 from the
Insert
 menu. An error will show on the sheet until this has been developed.
R&D Enhanced Expenditure (SME)
In the
R&D enhanced expenditure (SME)
 sheet, you can add rows for each type of expenditure you want to analyse. The
Business
 dropdown list lets you allocate expenditure to the relevant business in case there is more than one inserted. The
R&D project
 dropdown list lets you allocate expenditure between projects if the
R&D project (SME)
 sheets are developed. This sheet automatically reconciles amounts of expenditure with the
Income statement
. It also provides a breakdown for each business and for each accounting period based on the date of expenditure.
R&D Project (SME)
This sheet let you provide important information about R&D projects that are used in the computation. The questionnaire is based on HMRC criteria for projects qualifying for the relief. This sheet will also provide a summary of expenditure allocated to the project on the
R&D enhanced expenditure (SME)
 sheet broken down into accounting periods.
Payable Tax Credits
This sheet is a summary of all tax credits applicable to various tax reliefs. This sheet is populated automatically and calculates the amount of credit used in
Losses
and
Tax calculation
 sheets. This sheet also calculates amounts of credit available for surrender in loss-making trades.
Relevant PAYE references
This sheet lets you add details of your company’s Employer PAYE reference and that of any connected companies. This information is only required if the conditions for the exception to the tax credit cap are not met.
note
The row for
Intangible fixed assets
 expenditure qualifying for R&D is added automatically to this sheet. This sheet automatically calculates the total deduction for enhanced expenditure available in the current year to be deducted from the trade’s profit. This is a sum of expenditure with expenditure uplifted to the currently applicable uplift rate.

Research and Development Expenditure Credit (RDEC)

You can claim RDEC if you are a large company meeting all HMRC criteria. You can also claim RDEC if you are an SME or large company who have been subcontracted to do R&D work by a large company.
R&D expenditure credit (Large)
Use this sheet to add expenditure qualifying for the relief. It is possible here to allocate expenditure items to a relevant business or / and R&D project. This sheet is optional.
R&D project (Large)
You can use this sheet to help tracking expenditure allocated to individual R&D projects on
R&D expenditure credit (Large)
. This sheet will also provide a questionnaire that helps in identifying whether the project qualifies for the relief. This sheet is optional.
Utilisation of RDEC
Use this sheet to analyse the multi-step process of utilisation of RDEC which is compliant with current regulations. This sheet is created together with the
R&D expenditure credit (Large)
.
Credits Surrendered
You can use this sheet to provide details of claimant group companies if an election is made to surrender tax credits to a member company on the
Utilisation of RDEC
 sheet.
Completing the Sheets
Where you have identified amounts you want to be treated as
Qualifying R&D expenditure (Large)
 and/or
R&D expenditure credit
 within the
Income statement
, you should analyse these from the
Expense and income analysis
 sheet in which they arose. Select
Qualifying R&D expenditure (SME)
 and/or
R&D expenditure credit
 from the
Analysed as
 dropdown list on the row, and develop the
R&D expenditure credit (Large)
 sheet by selecting
Insert sheet
 from the
Insert
 menu. An error will show on the sheet until this has been developed.
R&D Expenditure Credit (Large)
In the
R&D expenditure credit (large)
 sheet, you can add a row for each type of expenditure you want to analyse. The
Business
 dropdown list lets you allocate expenditure to the relevant business in case there is more than one inserted. The
R&D project
 dropdown list lets you allocate expenditure between projects providing the
R&D project (Large)
 sheets are developed. This sheet will automatically reconcile amounts of expenditure and/or expenditure credit with the
Income statement
. It will also provide a break down for each business and for each accounting period based on the date of expenditure.
R&D Project (Large)
This sheet lets you provide important information about R&D projects that are used in the computation. The questionnaire is based on HMRC criteria for projects qualifying for the relief. This sheet will also provide a summary of expenditure allocated to the project on the
R&D expenditure credit (Large)
 sheet broken down into accounting periods.
note
A row for
Intangible fixed assets
 expenditure qualifying for R&D is added automatically to this sheet.
Utilisation of RDEC
This sheet is mostly populated automatically, with space for some manual user input.
note
This sheet automatically calculates the amount of expenditure credit available, based on the applicable RDEC rate. It also calculates use and availability of this amount subject to regulatory restrictions. This sheet also interacts with the Group module to either allow surrender or a claim of the relevant amount of the RDEC to or from another group member.
Credits Surrendered
This sheet allows you to enter details of claimant group companies if an election is made to surrender tax credits to a member company on the
Utilisation of RDEC
 sheet.

This article applies to:

  • PRODUCT: ONESOURCE Corporate Tax