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Where Taxpayers and Advisers Meet

Tax credits from R & D claims

MJBR
Posts:1
Joined:Sat Feb 04, 2023 4:01 pm
Tax credits from R & D claims

Postby MJBR » Sat Feb 04, 2023 4:04 pm

Hi,

I am a director and shareholder in an SME. We have £20k of tax credits from an R & D claim. I understand this will reduce our Corp Tax bill by £20k. My question is can does the £20k get added to post-tax profits which can then be used to pay dividends to shareholders?

ETaxConsulting
Posts:18
Joined:Sun Nov 29, 2020 3:25 pm
Contact:

Re: Tax credits from R & D claims

Postby ETaxConsulting » Tue Mar 28, 2023 1:18 pm

Hi

R&D Credits do not reduce your CT bill but reduce your CT losses available for offset. If however you are profit making then R&D Relief will reduce your CT bill thus increasing your profits available for distribution as a dividend.

Tim
Tax Manager
E-Tax consulting
www.e-taxconsulting.com


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