Business Tax- Post 01/04/2023 R&D SME and Intensive tax credits
Article ID
business-tax-post-01-04-2023-rd-sme-and-intensive-tax-credits
Article Name
Business Tax- Post 01/04/2023 R&D SME and Intensive tax credits
Created Date
20th July 2023
Product
IRIS Business Tax
Problem
IRIS Business Tax- Post 01/04/2023 SME R&D and Intensive tax credits
Resolution
There are two rules applying for the R&D SME from the IRIS version 23.2.0 update LINK:
1.The government announced that the tax credit rate for SME R&D claims would reduce from 14.5% to 10% for post 01/04/2023 periods.
2. In addition to this the government also announced a new SME tax credit for ‘R&D Intensive SME’ companies; companies whose qualifying expenditure is 40% or more will be allowed to claim an SME tax credit at an uplifted rate of 14.5%. This can be ticked on the R&D SME screen. When the checkbox is ticked the ‘Calculated Tax Credit’ field total for POST 01/04/2023 period will be at 14.5%.
We have updated the Business Tax R&D functionality to allow you to easily identify a company as an R&D intensive company and subsequently have the software automatically calculate the corresponding SME R&D claim at the uplifted 14.5%, without any additional manual calculations. This will then automatically map to the CT600 and supporting documents.
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