Hi all,
Long time browser, first post. I have been an engineering contractor for about 10 years and have recently been undertaking some research and development activities outside of my fee paying work. This amounts to several hundred hours of my time and maybe £10k in sub-contracting the building of prototypes. There is no guarantee that the prototype will work (as well) as intended, though obviously I hope it does and I can then start full production.
My questions are:
1. Can I somehow claim my time for R&D relief given that I can’t see how to keep timesheet records for this activity and anyway my income is mostly dividend with a small salary, so any nominal hourly rate would be v small. My accountant has suggested I could set up a second ltd co and bill that one from the first, but I don’t understand how that will work?
2. Does the subcontracted prototype build qualify for R&D relief of is that capital expenditure? Does it matter if the project fails and never gets to production?
Do other contractors have experience of doing R&D outside of client based business?
Many thanks in advance.
Long time browser, first post. I have been an engineering contractor for about 10 years and have recently been undertaking some research and development activities outside of my fee paying work. This amounts to several hundred hours of my time and maybe £10k in sub-contracting the building of prototypes. There is no guarantee that the prototype will work (as well) as intended, though obviously I hope it does and I can then start full production.
My questions are:
1. Can I somehow claim my time for R&D relief given that I can’t see how to keep timesheet records for this activity and anyway my income is mostly dividend with a small salary, so any nominal hourly rate would be v small. My accountant has suggested I could set up a second ltd co and bill that one from the first, but I don’t understand how that will work?
2. Does the subcontracted prototype build qualify for R&D relief of is that capital expenditure? Does it matter if the project fails and never gets to production?
Do other contractors have experience of doing R&D outside of client based business?
Many thanks in advance.
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