Funding Research

[London75]

Hello, wonder if anyone could offer some advice. I'm quite comfortably contracting at the moment with a pretty secure niche that should see me out for another couple of years at the same client.

I had a sort of eureka moment the other day, and, well, conceptually invented something which obviously I can't discuss. I'm going to start it as a Plan B but it needs a bit of funding, say around £1000 to start with and maybe more later. The things I need to buy can be resold so it's not something I need to think too hard about risk wise, want to have a play, prototype the idea and see if it works and if anyone is interested.

It seems daft to use personal income with all that tax already lost so what have other people done.

Also I remember there were supposed to be tax breaks for companies registering patents and presumably there are creative things you can do tax wise when it comes to R&D.

Anyone got any tips or experience?

Thanks

[Moscow Mule]

I'd start here.

HM Revenue & Customs: Research and Development (R&D) Relief for Corporation Tax

[Moscow Mule]

I'd start here.

HM Revenue & Customs: Research and Development (R&D) Relief for Corporation Tax

And I'd probably end there too - R&D relief only kicks in after you've spent £10k.

Don't see why your expenditure is not allowable against CT though (if your articles allow the business activity).

[London75]

Thanks, I'm in Business Intelligence and Financial Transformations and the "invention" is very much IT/Electronics so doesn't fit with the business function well. However, discussing with an accountant friend suggests the overhead of a second Ltd probably isn't worth it.

I'm also on Flat Rate VAT which is a pain for purchasing anything below £2k is it? I'm loathe to pay VAT on prototype stuff.

Any other tips given the above?


Oh and the stuff I need is to come from China, any problems to watch out for other than the inevitable non existant returns policy?