CREC063100 - Expenditure credit calculation: examples: single-period production
Company A is producing an animated TV programme. This is the first claim the company has made for the programme.听
Description听 |
Amount (拢)听 |
Total expenditure to date听 |
300,000听 |
Core expenditure to date听 |
280,000听 |
Excluded expenditure to date听 |
30,000听 |
Non-UK core expenditure to date听 |
70,000听 |
Qualifying expenditure to date in last period in which a claim was made听 |
n/a听 |
Note: 鈥榯o date鈥� means up to the end of the accounting period to which the claim relates.听
Step 1 - Find the amount of relevant global expenditure听(CREC051000)听
Relevant global expenditure is expenditure that听is brought into account as part of the separate trade, is core expenditure and is not excluded expenditure.听
Assuming that all of Company A鈥檚 core expenditure has been brought into account as part of total expenditure, and that all excluded expenditure is core expenditure, relevant global expenditure is:听
拢280,000 - 拢30,000 = 拢250,000听
Step 2 鈥� Deduct non-UK expenditure from the result of step 1听
Assuming that听all of Company A鈥檚 non-UK expenditure is core expenditure but is not also excluded expenditure:听
拢250,000 - 拢70,000 = 拢180,000听
UK expenditure is therefore 拢180,000听
Step 3 鈥� Find the lesser of UK expenditure and 80% of relevant global expenditure听
UK expenditure (the result of step 2) = 拢180,000听
80% of relevant global expenditure = 拢250,000 x 80% = 拢200,000听
The lesser amount (拢180,000) is 鈥榪ualifying expenditure to date鈥�.听
Step 4 鈥� Deduct 鈥榪ualifying expenditure to date鈥� in the last period in which the company claimed a credit from 鈥榪ualifying expenditure to date鈥� in the current period听
Because this is the company鈥檚 first claim for this production, there is no need to do anything at this step. 鈥楺ualifying expenditure for the period鈥� is equal to 鈥榪ualifying expenditure to date鈥�: 拢180,000.听
Step 5 鈥� Multiply 鈥榪ualifying expenditure for the period鈥� by the relevant percentage听
Because Company A is making an animated TV programme, the relevant percentage is 39%.听
The amount of credit to which Company A is entitled is 拢180,000 x 39% = 拢70,200.听