Correct posting for R&D Credit received

Accounting
1

We’ve qualified for receipt of R&D credit from HMRC but I’m wondering how I can post this receipt into our accounts. It is not a trading receipt so I can’t show it on the sales ledger and I obviously don’t want to have it being swept up into a tax computation. Any suggestions?

2

Is claim under

  1. The SME R&D tax credit scheme, or
  2. RDEC – the Research and Development Expenditure Credit.

Accounting treatment of both are very different

3

Hi and thanks for responding.

It is the SME R&D tax credit scheme I’m referring to but due to our small size we have elected to receive payment rather than offset against future tax.

David

4

To book CT refund
Dr Other debtors
Cr Corporation tax (P&L)
once you actually get money

Dr Bank
Cr Other Debtors

1 Like
5

Thanks for your help - will act as you suggest