How to enter Research and Development for creative industries

Introduction

Users are required to enter the enhanced expenditure in this screen. These amounts will appear in the CT600 and the computation.

Step 1 - Entering the Enhanced Expenditure

1. In the CT600 field for box 101, enter the total creative industries enhanced expenditure with expenditure incurred on or after 1 April 2013.

2.  In the Adjust Trade Profits by field enter the amount by which the Trade computation should be amended.

• These fields are only accessible if the account period end date is on or after 1 April 2013.

Step 2 - Entering the Creative Industry Tax Credit

To access the screen select Data Entry | Calculation | Tax reconciliation | click Edit next to box 87

The following screen displays.

1. In the Creative Industry tax credit field enter the calculated tax credit.

2. In the Payable credit rate field enter 25%.

A warning will display if another percentage is entered as it must be 25%.

3. After entering the Tax credit, select Reports | Corporation tax | Basic |

The tax credit will reduce the net corporation tax chargeable or create an overpayment as shown below. It will also show a break down for the utilisation of the trading losses against the tax credit.