• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Question regarding tax relief on r&d etc

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Question regarding tax relief on r&d etc

    So how does this new tax relief work then?

    Say i have 10 grand in a corporate bank account ... assuming 100% relief - does that mean as long as i 'invest' 22% of that ... then that cancels out my corporation tax liability for that year (for that 10 grand).

    Go easy on me - Gordon Brown is a confusing fellow.

    #2
    I believe so. Depends what you are going to "invest" it in. Its probably a good idea for businesses who spend of R&D but as a way to get tax out of the business then I doubt its any good.

    Comment


      #3
      does that mean therefore that I could "invest" [ as they say above 22% ] in say a training course as part of company enhancement.

      The net effect is that the company post tax profit is the same and I've had a traing course for free ?
      Cenedl heb iaith, cenedl heb galon

      Comment


        #4
        Originally posted by Bluebird
        does that mean therefore that I could "invest" [ as they say above 22% ] in say a training course as part of company enhancement.

        The net effect is that the company post tax profit is the same and I've had a traing course for free ?
        This is a really interesting proposition. I would hope it can be the case, there will be alot more contractors getting trained thats for sure!!

        TM

        Comment


          #5
          Originally posted by nucastle
          So how does this new tax relief work then?

          Say i have 10 grand in a corporate bank account ... assuming 100% relief - does that mean as long as i 'invest' 22% of that ... then that cancels out my corporation tax liability for that year (for that 10 grand).

          Go easy on me - Gordon Brown is a confusing fellow.
          I don't know where you get the 22% from. You get 150% relief, which I think means if you spend £10K on R&D you've reduced your overall liability for CT by £15K, and so reduce your CT bill by 22% of that - i.e. £3300 less. But then you've had to spend £10K to get there. So good if you genuinely do R&D, not very useful for the likes of us.

          And you need to spend at least £10K:

          http://www.dti.gov.uk/innovation/ran...page11350.html

          What I guess you could do, is if you found yourself on the bench for 6 months, claim you're doing R&D. And then the government will pay some of your salary.
          Will work inside IR35. Or for food.

          Comment

          Working...
          X