CREC063200 - Expenditure credit calculation: examples: multi-period production

Company B is producing a video game. 

AP1 

Description 

Amount (£) 

Total expenditure to date 

200,000 

Core expenditure to date 

190,000 

Excluded expenditure to date 

15,000 

Non-UK core expenditure to date 

25,000 

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 

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

Assuming that all of Company B바카라 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: 

£190,000 - £15,000 = £175,000 

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

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

£175,000 - £25,000 = £150,000 

UK expenditure is therefore £150,000 

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

UK expenditure (the result of step 2) = £150,000 

80% of relevant global expenditure = £175,000 x 80% = £140,000 

The lesser amount (£140,000) 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™: £140,000. 

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

Because Company B is making a video game, the relevant percentage is 34%. 

The amount of credit to which Company B is entitled for AP1 is £140,000 x 34% = £47,600


AP2 

Description 

AP1 amount (£) 

AP2 amount (£) 

Total (£) 

Total expenditure 

200,000 

150,000 

350,000 

Core expenditure  

190,00 

130,000 

320,000 

Excluded expenditure 

15,000 

10,000 

25,000 

Non-UK core expenditure 

25,000 

20,000 

45,000 

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

N/A 

140,000 

- 

바카라 사이트˜To date바카라 사이트™ means up to the end of the accounting period to which the claim relates, therefore in the second AP it includes all the expenditure from both AP1 and AP2.  

Step 1 - Find the amount of relevant global expenditure 

Making the same assumptions as in AP1, relevant global expenditure is: 

£320,000 - £25,000 = £295,000 

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

£295,000 - £45,000 = £250,000 

UK expenditure is therefore £250,000. 

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

UK expenditure (the result of step 2) = £250,000 

80% of relevant global expenditure = £295,000 x 80% = £236,000 

The lesser amount (£236,000) 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 

The most recent period in which Company B claimed a credit was the previous period, AP1. 바카라 사이트˜Qualifying expenditure to date바카라 사이트™ in AP1 was £140,000. 

£236,000 - £140,000 = £96,000 

바카라 사이트˜Qualifying expenditure for the period바카라 사이트™ is therefore £96,000. 

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

The relevant percentage is still 34%. 

The amount of credit to which Company B is entitled for AP2 is £96,000 x 34% = £32,640Â