Business Tax- CT600L and R&D SME L167+ L168 for PAYE and NIC Liability

business-tax-ct600l-and-rd-sme-l168-for-paye-and-nic-liability

Business Tax- CT600L and R&D SME L167+ L168 for PAYE and NIC Liability

8th June 2022

IRIS Business Tax: CT600L and R&D SME L167 and L168 for PAYE and NIC Liability (and L166)

Data Entry | Research and Development CT600L | Company PAYE and NIC Liability – tick box ‘Exempt from Restriction’ to place the entry in Box L168.

The option to fill in Box L168 on the CT600 is also period based. The PAYE and NIC liability is used to restrict the R&D Tax credit But the restriction does not apply to periods starting before 01/04/21.

Research and Development, then go to SME Research and Development, then fill in the box ‘Company PAYE and NIC liability‘.

For example this is a 2022 period – the option for ‘Company PAYE and NIC liability‘ box will then show and the value entered will show on box L168.

If the period is too early then the box ‘Company PAYE and NIC liability‘ will not appear. This is following HMRC rules.

Box L167: The same period rules applies for L167 on why its ticked or unticked (which is done automatically). For example: periods starting before 01/04/21, L167 is ticked by default.

NOTE: If the LTD is multi trade and you have not allocated the trade values into each one (OR there’s only ONE trade entry)- then L166 and L168 may not be populated with any calculated values. BT will warn you when you load this client that no trade has been allocated.

These 2 images are after 01/04/2021 (if not ticking Exempt from restriction)