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. 

Description 

Amount (£) 

Total expenditure to date 

300,000 

Core expenditure to date 

280,000 

Excluded expenditure to date 

30,000 

Non-UK core expenditure to date 

70,000 

Qualifying expenditure to date in last period in which a claim was made 

n/a 

Note: 바카라 사이트˜to date바카라 사이트™ means up to the end of the accounting period to which the claim relates. 

Step 1 - Find the amount of relevant global expenditure (CREC051000) 

Relevant global expenditure is expenditure that is brought into account as part of the separate trade, is core expenditure and is not excluded expenditure. 

Assuming that all of Company A바카라 사이트™s core expenditure has been brought into account as part of total expenditure, and that all excluded expenditure is core expenditure, relevant global expenditure is: 

£280,000 - £30,000 = £250,000 

Step 2 바카라 사이트“ Deduct non-UK expenditure from the result of step 1 

Assuming that all of Company A바카라 사이트™s non-UK expenditure is core expenditure but is not also excluded expenditure: 

£250,000 - £70,000 = £180,000 

UK expenditure is therefore £180,000 

Step 3 바카라 사이트“ Find the lesser of UK expenditure and 80% of relevant global expenditure 

UK expenditure (the result of step 2) = £180,000 

80% of relevant global expenditure = £250,000 x 80% = £200,000 

The lesser amount (£180,000) is 바카라 사이트˜qualifying expenditure to date바카라 사이트™. 

Step 4 바카라 사이트“ Deduct 바카라 사이트˜qualifying expenditure to date바카라 사이트™ in the last period in which the company claimed a credit from 바카라 사이트˜qualifying expenditure to date바카라 사이트™ in the current period 

Because this is the company바카라 사이트™s first claim for this production, there is no need to do anything at this step. 바카라 사이트˜Qualifying expenditure for the period바카라 사이트™ is equal to 바카라 사이트˜qualifying expenditure to date바카라 사이트™: £180,000. 

Step 5 바카라 사이트“ Multiply 바카라 사이트˜qualifying expenditure for the period바카라 사이트™ by the relevant percentage 

Because Company A is making an animated TV programme, the relevant percentage is 39%. 

The amount of credit to which Company A is entitled is £180,000 x 39% = £70,200.Â