Presenting the credit in the accounts & tax computation: avoiding common processing delays

1) The core principle: what HMRC expects to see

The simplest way to think about it is this: under RDEC (including the merged regime), the credit is treated as a taxable receipt (gross). Even where the net benefit is shown after tax, HMRC need to be able to see that the gross amount has been brought into account somewhere in the overall package.

Your goal is not to “optimise presentation”, it’s to make it immediately clear that the gross credit has been recognised and that your numbers reconcile.

2) Where to present it: accounts vs computation

There are broadly two “presentation lanes”: show the gross credit in the accounts (typically as other operating income), and/or show it in the tax computation as an adjustment/income line that feeds into trading profit.

In our experience, the lowest-friction approach is to ensure the gross credit is visible in both places, not because it is always legally required to duplicate, but because it makes the treatment obvious and reduces the risk of a reviewer missing it.

3) Accounts presentation: simple formats that work

For most SMEs, the cleanest approach is to include a dedicated line within the profit and loss such as: “Other operating income – RDEC (gross)” or “R&D expenditure credit (gross)”.

What matters most

• Label clarity: avoid generic “Other income” without indicating that the RDEC gross is included.
• Traceability: if “Other income” is a composite line, show a short breakdown in the notes or schedule.
• Consistency: the wording used should broadly match what appears in the computation schedules.

If your statutory accounts are abbreviated or highly summarised, consider adding a short note in the detailed profit and loss page or supporting schedules, even if only internal, the aim is to make the gross credit unambiguous.

4) Computation presentation: schedules & tie-outs

The computation should show how you move from accounting profit to taxable profit. The gross credit should appear as a clearly identifiable line that feeds into trading profit (or the relevant profit measure used).

A clean computation structure

• One clear line: “RDEC (gross) taxable receipt” (with the gross amount).
• A bridge: if the accounts already include the gross credit, explain that the computation line is “included in accounts” (or show no additional adjustment, but cross-reference the accounts line).
• A reconciliation: a short tie-out from claim workings → gross credit → computation → CT600/AIF totals.

5) CT600 & AIF: avoiding mismatches

Even when the numbers are correct, processing can slow down if the CT600/AIF flags or totals don’t match the story told in the accounts and computation. Make sure the submission is internally consistent:

• AIF submitted: ensure the CT600 reflects that the Additional Information Form has been filed (where relevant for the period/claim type).
• Claim type indicated: correct boxes/tags for the regime and the company’s status.
• Totals reconcile: AIF qualifying expenditure totals tie to claim workings and computation schedules.
• Project naming consistency: AIF project list aligns with report headings.

The aim is that a reviewer can jump between AIF → report → computation without seeing different totals or different naming conventions.

6) The most common “delay triggers”

The following are the patterns we see most often when claims get unnecessarily queried:

• Generic labelling: “Other income” with no indication that it includes the gross credit.
• Net-only presentation: a net benefit shown without a clear bridge back to the gross taxable receipt.
• Inconsistent totals: AIF totals differ from claim workings or computation schedules.
• Document drift: last-minute changes to one document but not the others (especially project list and cost totals).
• Missing cross-references: the gross credit is present, but not easy to trace (e.g., buried in a schedule with no signposting).

7) A practical pre-submission checklist

Before you submit, do a quick “three-way alignment” check:

• Accounts: is there a clearly labelled gross credit line (or breakdown note) that a reviewer can spot instantly?
• Computation: does the gross credit feed into taxable profit clearly, and does it reconcile to the claim working?
• AIF/CT600: do totals and flags match the package, with consistent project naming and cost category totals?

8) Example wording / labelling options

If you want a simple, consistent naming convention, these tend to work well:

The specific terminology is less important than the consistency across documents and the ability to trace the gross figure through to taxable profit.