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?
Is claim under
- The SME R&D tax credit scheme, or
- RDEC – the Research and Development Expenditure Credit.
Accounting treatment of both are very different
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.
To book CT refund
Dr Other debtors
Cr Corporation tax (P&L)
once you actually get money
Cr Other Debtors
Thanks for your help - will act as you suggest