mandelbrot
Registered User
- Messages
- 2,330
This confuses me. Either the project is an R&D project or it's not, even if it includes some run-of-the-mill tasks. I don't understand the 'apportionment' argument and I haven't heard it raised before by experts on this topic. I hope Revenue aren't trying to move the goalposts on this useful tax credit.
Not as far as I know. If you're a commercial entity your R&D may be carried out with a view to getting a new product on the Market.
In manufacturing industries, which are what I'm most familiar with, the R&D would be in the area of engineering and materials science, and generally once you have a fully functioning prototype which encompasses the resolved scientific/technological uncertainties, then the R&D phase has ended, but the product will not be ready for mass production.
The cost of the plant & equipment used for developing the prototype will be allowable R&D, but if it is then used for production its cost needs to be apportioned to reflect its R&D usage as a % of its total life.
My point is that the question is when does the R&D activity end, and afaik the answer is generally long before you have a product to Market.