Research and Development or Creative Industry relief and tax credits

This screen is accessed via the data input tab within the tax return. Use this section to claim Research & Development relief, Creative industry reliefs or R&D/Creative industry tax Credits. Only companies which are based in the UK, and that pay Corporation Tax, are eligible to apply for Research and Development (R&D) Tax Credits. There are two schemes for R&D tax relief,

  • Claims to an enhanced deduction available to SMEs only and
  • Research & Development expenditure credit (Above The Line). This is available to both SME’s on certain expenditure and for large companies.

This section has three tabs:

(Click the links above for specific help on Research & Development tax credits.)

CT600 (2021) Version 3 – Changes to CT600 – Boxes 530, 570, 605 

HMRC have made changes to the population of Research & Development tax credits boxes in the Tax reconciliation section on page 6 of the CT600 (2021) Version 3 that differs from previous versions of the tax return.  

  • Box 530 – the amount of Research & Development credit no longer includes the full amount of the payable credits but is now: 
  • Research & Development tax credit set off against other liabilities arising in the Return period such as tax on Loans to Participators   
  • Research & Development Expenditure Credit used to discharge the Corporation Tax liability and amounts set off against other liabilities arising in the Return period such as tax on Loans to Participators   
  • Box 570 – As a result of the limit to the values now being shown in box 530, box 570 will no longer show payable Research & Development credits. 
  • Box 605 – as a direct result of the changes to the previous boxes any overpayment arising from the claim to a payable tax credit will no longer appear in this box. The payable tax credits continue to be shown in boxes 875 and 885. 

HMRC Exclusion from Filing CT600L online  

Please note that where a claim to Research & Development Expenditure credit includes an amount of Expenditure credit brought forward from a previous period this cannot be filed online due to an HMRC system error. Taxfiler will produce the CT600L including the credit brought forward and a detailed report of the full claim in the associated computation allowing for the correct paper submission to be made. When sending the completed return to HMRC please ensure you attach a completed WT1 form

Enhanced expenditure

This tab of the R&D or Creative Industry Relief and tax credits section allows input of enhanced expenditure totals and Creative Industry Tax Credit.

R&D and Creative Industry Relief enhanced expenditure

  • Claim for creative industry expenditure?‘ Tick the box if claiming films expenditure.
  • Claim by SME or SME subcontractor?’ Tick the box if the claim is made by an SME or SME subcontractor.
  • Claim made by large company?‘ Tick the box if the claim is made by a large company.
  • R&D or creative industry enhanced expenditure‘ Enter the R&D or creative industry enhanced expenditure.
  • R&D enhanced expenditure of SME on work sub-contracted‘ Enter the enhanced expenditure of an SME on work that is sub-contracted from a large company.

Creative Industry Tax Credit

  • Unrelieved trading losses available for surrender‘ This field shows the current value of unrelieved trading losses, brought through from the Trade Summary tab
  • Loss surrendered for Creative Industry Tax Credit’ Enter the amount of the loss that is to be surrendered for Creative Industry Tax Credit.
  • Creative Industry Tax Credit claimed‘ Enter the amount of tax credit claimed.

Enhanced expenditure must also be entered on the adjustments to trade profit in the trading profits section from the data input tab in the tax return.