"Auto-enrolment"

[northernladuk]

The details are in the word developed and linking that to some very clear guidelines from. HMRC noting this paragraph amongst others.

. A process, material, device, product, service or source of knowledge does not become an advance in science or technology simply because science or technology is used in its creation. Work which uses science or technology but which does not advance scientific or technological capability as a whole is not an advance in science or technology

So the devil in the details of what you can created and if it had advanced knowledge. I doubt due the number of people that come.on asking if what they've developed is R&D and its not. It's just a useful app that doesn't advance anything

I don't know what you've created so it's your call.

[northernladuk]

Pretty clearly explained here.
https://www.gov.uk/hmrc-internal-man...nual/cird81960

Projects unlikely to involve R&D
Some software applications or components of applications will normally follow established methodologies and not involve scientific or technological uncertainties and so not qualify as R&D, examples are:

The handling of interactions with users. This covers areas such as development of data entry procedures and user interfaces.
The visual presentation of information to users.
Creating software that replicates an established paper procedure, possibly building in best practices. The fact that a previously manual task has been automated does not by itself make it R&D.
The assembling, carrying out routine operations on, and the presenting of, data.
Using standard methods of encryption, security verification and data integrity testing.
Creation of websites or software using tools designed for that purpose.
However where these contribute directly to a larger R&D project they would not be excluded from the larger project.

Software projects likely to be R&D
Developing new operating systems or languages.
Creating new search engines using materially new search methods.
Resolving conflicts within hardware or software, where the existence of a problem area and the absence of a known solution have been documented.
Creating new or more efficient algorithms whose improvements depend on previously untried techniques.
Creating new encryption or security techniques that do not follow established methodologies.

So yes Majestic would clearly count.

[AtW]

Have you claimed R&D tax credits? If not, then you can claim for the last two years. The form is easy enough to fill in. I managed to get back 50% of my CT for the last two years.

Ongoing improvements and maintenance of existing product isn't covered by R&D tax credits stuff - yes I did ask accountant and got Deloitte to audit it...

We do claim some experimental work, but majority of stuff won't qualify - R&D tax credits and Patent Box stuff were designed to benefit some particular large companies that we are not.

It's easier just to sell all export sales via foreign subsidiary in a zero corp tax zone - totally legal as UK revenues will be booked in UK, something that will be even more attractive if new trade barriers will appear.

P.S The Govt can shove those complicated tax credits up its rectum

[northernladuk]

Guess he better get a large tub of lube through under R&D quick then.

[Mordac]

Guess he better get a large tub of lube through under R&D quick then.

You're assuming he'd qualify under the "user interface" clause...?

[tomtomagain]

The details are in the word developed and linking that to some very clear guidelines from. HMRC noting this paragraph amongst others.


So the devil in the details of what you can created and if it had advanced knowledge. I doubt due the number of people that come.on asking if what they've developed is R&D and its not. It's just a useful app that doesn't advance anything

I don't know what you've created so it's your call.

Well I accurately described what I have done. Filled in the correct forms and submitted the information. HMRC reviewed and awarded the credits.

If you don't ask, you don't get.

[northernladuk]

Well I accurately described what I have done. Filled in the correct forms and submitted the information. HMRC reviewed and awarded the credits.

If you don't ask, you don't get.

And you can put any old bollocks down on your expenses and get away with it as well. Doesn't make it right. Your ass on the line so if you think it's worth it then fill your boots.

[tomtomagain]

And you can put any old bollocks down on your expenses and get away with it as well. Doesn't make it right.

Yup. You can make up "expenses". I don't. You can put down anything you like on an R&D tax form. I didn't. You can use specialist "R&D Tax Credit Claims Firms" ( Guaranteed 100% success rate, smells like a complete scam to me ). I didn't. And if you are really stupid you can try and join a scheme that allows you to keep 97% of your income tax free!

Or you can run your company properly, keep your records accurately, pay your taxes on time. I do.

Your ass on the line so if you think it's worth it then fill your boots.

I resent that line. "Filling My Boots". It's not like I put the money in my own back pocket. The refund has been put back into the company and with that and the fall in sterling ( I sell in USD ) I have been able to create a new job in the UK.

And surely the tax system is not only about collecting and redistributing money to pay for services and welfare but also about incentivising companies and supporting the development of new and growing businesses?

It is my ass on the line. Which is why it's done right. I have absolutely no qualms or concerns about what I submitted. As I said, I filled in everything that was asked of me accurately and produced a detailed 20 page document of supporting evidence. If HMRC wish to review the claim then I'd be more than happy to discuss it further.

At the end of the day all I can do is follow the rules. Which is what I did and the result was the R&D tax credits.

[AtW]

Well I accurately described what I have done. Filled in the correct forms and submitted the information. HMRC reviewed and awarded the credits.

If you don't ask, you don't get.

If you put R&D for creation of product when you had risks of failure it's one thing, but once product is up and running, then it will be not allowed to claim incremental improve,ents which in case of SaaS product could be "just" website work, the guidance is fuzzy and designed to minimise claims - I am pretty sure R&D tax credits is very abused at the moment, HMRC holds all the cards (as usual), so best to be well above board.

It's important to maintain separate documentation for it - just because they don't ask does not mean they won't, I expect crackdown on RD in any next budget - they are reducing headline corp tax so will try to claw back credits

[AtW]

Guess he better get a large tub of lube through under R&D quick then.

That would be equipment - annual investment allowance should cover it (as long as it's budiness only), R&D dies not enhance write off, only when it comes to wages R&D can write a lot more than spent

HTH