IR35 and Business on own Account

[eek]

It seems funny that both small companies claim they carry out R&D. We had some quite interesting discussion about exactly what that is in IT and I seem to think it's unlikely many will be doing yet we have two in a week.

For tax credits R&D is still very generously described - R&D Tax Credits for Software Development - What Qualifies? . I would probably qualify for it as we need to keep bleeding edge which means no documentation on how to do it...

[pauljh]

It seems funny that both small companies claim they carry out R&D. We had some quite interesting discussion about exactly what that is in IT and I seem to think it's unlikely many will be doing yet we have two in a week.

R&D is where I'm paying for virtual servers and payng people researching solutions to an applicaiton idea I have, trying out various ideas and technical solutions, I'm paying for software licenses for plugins, paying various other consultants for a few hours work to come up with software solutions to ideas, paying some other business people to give input on its functionality etc.

None goes to a client or is for a client...

i.e. R&D, surely all IT "contractors" spend some of their time doing and paying for things like this....


"funny" 2 certainly is a very large number........................

PS I am not claiming any sort of R&D tax relief..

[WordIsBond]

PS I am not claiming any sort of R&D tax relief..

Perhaps you should talk to the Advanced Assurance people at HMRC about it. They are extremely helpful and they do want to help you get the credit if at all possible -- take-up is lower than funding.

We got Advanced Assurance for a project that turned out to be 18 man months, and for which we had to spend over £20K on specialised software. It was very helpful to us.

[monkeyhanger]

It seems funny that both small companies claim they carry out R&D. We had some quite interesting discussion about exactly what that is in IT and I seem to think it's unlikely many will be doing yet we have two in a week.

If you define R&D as employing one or more software engineers to develop products for sale, then yes, we are investing in R&D. Is there another definition of R&D?

[eek]

If you define R&D as employing one or more software engineers to develop products for sale, then yes, we are investing in R&D. Is there another definition of R&D?

See my post above - which tells you what HMRC look at when giving out the tax credits they have more budget for than claimants.

[WordIsBond]

Also, Advanced Assurance:
Research and Development tax relief: Advance Assurance - GOV.UK

This is not focused on software but is helpful:
http://www.hmrc.gov.uk/gds/cird/atta...impleguide.pdf

[monkeyhanger]

See my post above - which tells you what HMRC look at when giving out the tax credits they have more budget for than claimants.

I will certainly look into that.

Thanks