Business Tax- Cannot edit values in Creative Expenditure 665 or Creative tax credit 540

business-tax-cannot-edit-values-in-creative-expenditure-665-or-creative-tax-credit-540

Business Tax- Cannot edit values in Creative Expenditure 665 or Creative tax credit 540

5th July 2022

IRIS Business Tax: Cannot edit Creative Expenditure or Creative tax credit values - you have values in both boxes but cannot change them

You have already made entries under the Creative Expenditure box 665 and Creative tax credit box 540 – but now you cannot edit the values. If you try and edit 665 for the Creative expenditure- you get this error- see image below

If you try and edit 540 for the creative tax credit value – all the options are greyed out and you cant access the cells

This is because there has been a change of trade income for the company which has locked in your previous creative tax credit value and thus you cannot edit the creative expenditure value- for example you were in loss but now have a profit.

You can try this:
Edit, Postings, Trade income disallowed, Specific postings – Add in a £10000000 value or higher (this will trigger a loss on the tax comp) and OK
Now go to Data entry, Tax reconciliation, 540 edit
You can now delete the Creative credit claim – OK

Now go to Enhanced expenditure
Box 665 edit
Remove the Expenditure claim – OK

Now go to Postings and delete the fake £10000000 entry – this changes the loss back into a profit

Now go to Enhanced expenditure
Box 665 edit
Add back in the expenditure.

BUT If there is a still a gain/profit: you cannot claim the Creative tax credits IF there is a profit showing in the year (it must be a loss), even when you suppress this. The creative tax credit will only be released if there is a loss, the software will not allow the claim and grey out all the creative credit options. If you want to test this – trigger a loss entry eg Trade income disallowed and now access the creative credit screen.