Case study R&D Project failure

Kerrigan

Registered User
Messages
378
A family member had a relatively successful business . . . However, he stuck his neck out and enrolled the services of an established consultancy services company, specializing in the field he was trying to progress in. They spent months and months engaging on the R&D program and racked up quite a serious bill.

The business starts to decline . . .

In the interim the family member gets a revenue audit. Revenue note all is in order but they are not happy with his non payment to the consultancy firm and decide to call in the purchase invoice he had received from the consultancy practice. He had claimed the vat on said purchase invoice but obviously did not pay the practice at that time as he was certain they would be paid at a later date. He hadn't paid them before the 6 month Revenue deadline.

There was meetings with said practice who issued him with a credit note. He returned the intellectual property back to them.

We are trying to help them as best we can and I am personally going to clear the revenue bill but before I take out the cheque book I am wondering is there any incentive or write down for businesses who delve into R&D and fail?

PS He is a sole trader not a ltd company.
 
Back
Top