Business Tax: How to enter SME R&D and RDEC values Pre/Post 2019

business-tax-how-to-enter-sme-rd-and-rdec-values-pre-post-2019

Business Tax: How to enter SME R&D and RDEC values Pre/Post 2019

23rd July 2021

IRIS Business Tax - How to enter SME R&D and RDEC entries in Pre and Post 2019 periods?

In 2020/2021 IRIS revised the design of the SME R&D and RDEC entry screens which affected post 2019 returns. However if you are running a pre 2019 return you will still need to use the original methods of entering data.

Pre 2019 SME R&D and RDEC data entry

SME R&D: Data Entry | Enhanced Expenditure | ADJ trade profits by – qualifying expenditure multiplied by 130% | CT600 – qualifying expenditure multiplied by 230% The tax credit claim figure will be the lower of the CT600 figure entered in Enhanced Expenditure and the financial trading loss made in the year on the computation, multiplied by 14.5% (post April 2014 rules). Go to Data Entry | Calculation | Tax Reconcilliation | Edit next to box 87/545 – enter the 14.5% tax credit claim at the very top.

RDEC: Data Entry | Calculation | Tax Reconcilliation | Edit next to box 87/545 – Click ‘Above the line tax credit’ details box. Enter the Qualifying Expenditure in Box A. BT will calculate the rest. We have also provided options to adjust the values (Box C and D etc ).

Post 2019 SME R&D and RDEC data entry

1. Load the Client in BT and select the correct period
2. On left side – Research and Development (CT600L)
3. On the top left – choose the tabs either SME R&D and/or R&D Expenditure Credit(i.e RDEC).
4. Only enter the value on the ‘Expenditure’ box. BT will auto calculate the credit (if permitted)
5. We have provided override options etc to adjust the values
6. OK to save

SME R&D screen – You can only claim the Tax Credit if the company is making a loss.

R&D Expenditure Credit (RDEC) screen