BPT mock corrections

Question 1

What should you do with R&D expenditure if you get it asking for an updated tax adj trading profits?(3)

Answer 1

Capital items will get 100%/50% FYA
Revenue will get 230%
remmver if connect company there is no cap on subcontracted work

Or RDEC 13% if large (rmemeber no on capital items)

SME point: If a company is entitled to R&D super deduction and had a trading loss they can claim an R&D tax credit (see OBT)

Question 2

If a q has full time overseas workers and the q asks about their income taxable what should you talk about?

Answer 2

Think about any DTR and residency of the idndivudals
As they are working for a UK compant will be liable to Uk tax
However they will also likely be reisdent in the os company so libal eot their income tax
Thus likely to get DTR on lower of Utopia and their income tax (or whatever is set out in their DTR)
Could also discuss implications of PE being set up for a company by employees working over seas