IAS21948 Business Tax- 25.2/25.3 R&D calculation incorrect (19% and not 25%)
Article ID
business-tax-25-2-25-3-rd-calculation-incorrect-19-and-not-25
Article Name
IAS21948 Business Tax- 25.2/25.3 R&D calculation incorrect (19% and not 25%)
Created Date
1st October 2025
Problem
Resolution
IRIS has raised a issue where the R&D % rate being charged is incorrect. It is charging it at the incorrect 25% rate, because the profits are over £50,000 after the R&D has been entered then it should be at a correct rate of 19%, based on the HMRC rule: –
Notional Tax Calculation feature where the Notional Tax withheld is calculated based on the appropriate tax rate for each company’s chargeable profits. For loss-making companies the system utilizes the Small Profits Rate of 19%
This is currently under investigation (as it affects version IRIS versions 25.2 and 25.3) from the IRIS Development team and we are looking for a possible fix in version 25.4 in early November 2025 (TBC). There is no workaround at this stage.
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