Game Developers Limited began conducting R&D into new games platforms in the year ended 31/12/2010. The company had once developed a new rendering application in 2003, which was also considered R&D. No other R&D work was ever undertaken by Game Developers Ltd.
Game Developers Ltd calculated its R&D Tax Credit for the year ended 31/12/2010 as follows:
If Game Developers Ltd had a corporation tax liability of €100,000 in the year ended 31/12/2010, it should be able to offset its R&D Tax Credit as follows:
If Game Developers Ltd did not pay corporation tax in the year ended 31/12/2010, it should receive an R&D Tax Credit in the form of cash payments from Revenue over the next 3 years as follows (on the basis that the company is also not paying corporation tax for the years ended 31/12/2011 and 31/12/2012, and assuming its pay roll tax liabilities for 2010 was at least equal to the €75,000 R&D tax credit):
Please note that the above example is for illustrative purposes only, and professional advice should be sought prior to submitting a claim.
You can try KPMG’s free online R&D Tax Credit Assessor to help determine whether your company may be eligible for the tax credit.