Accounting for RDEC
You can make a claim up to two years after the end of the accounting period it relates to.
You can claim the credit by entering your expenditure into the full Company Tax Return form (CT600). However, as the claim is above the line, this credit will appear as other income in your accounts. This will have the benefit of improving the profitability of your business or business unit making a claim.
Depending on if your company is profit or loss making, the credit may be used to discharge the liability or result in a cash payment. However, please be aware that for businesses paying in quarterly instalments, the RDEC scheme benefit falls outside of these calculations.
The accounting and tax treatment of an RDEC claim can be complex and this is where having an R&D tax advisor who can cover both the tax and accounting policy implications is important.