Business Tax: Claim Creative Enhanced Expenditure credit 540,665 and 885

Article ID

business-tax-claim-creative-enhanced-expenditure-credit

Article Name

Business Tax: Claim Creative Enhanced Expenditure credit 540,665 and 885

Created Date

9th November 2021

Product

Problem

IRIS Business Tax: How to claim Creative Enhanced Expenditure credit boxes 540,665 and 885

Resolution

1. Load the client and select the relevant period
2. Enhanced Expenditure
3. Creative enhanced expenditure – Click ‘Edit’

4. Fill in the relevant row with the expenditure value on both boxes and OK. This fills in boxes 665 and 670.

5. How to claim the Creative credit – Data entry, Calculation and Tax Reconciliation and next to ‘Creative Tax Credit’ box 540 and Edit. The row you had filled in earlier and IF the company is loss making – the box will be available and enter in the Creative tax credit value and OK. This fills in box 540 and on the Tax return Box 885.

IF this row is greyed out then the company is not loss making and you cannot claim Creative credit.

6. If you get a warning like this when entering the credit- then BT has auto-calculated what maximum credit claim can be used (it checks this against the enhanced expenditure value) and it will auto correct it.