Accounting for R&D tax credit (UK)
We have received a cash R&D tax credit from HMRC, which we claimed this year back from the two previous tax years.
How should that transaction be added? Should there be a new account created for it in Chart of Accounts?
Re: Accounting for R&D tax credit (UK)
On the assumption that you didn't have a debtor for it at year end then it wants to go through the tax code you use on the profit & loss account. Ideally for future refunds you would debit tax debtor on the balance sheet and credit tax account on the profit & loss account at year-end.