R and D tax credits

[shirepro]

Has anyone tried to claim the Research and Development tax credits for SMEs? On paper it looks good, and just up my street but it talks specifically about R and D in 'science and technology' and I was wondering how far that extended? Secondly you have to retain intelectual copyright on the product. How do they deal with shared venture where one is an SME and one is larger or a government department?

www.inlandrevenue.gov.uk/randd/index.htm

[Don]

We've done this. We develop innovative (important) effort collection solutions and have been able to claim back a proportion of tax paid by workers on the project to offset development costs.

Get professional advice. You will need to write some very nice justifications to do it but considering you could get back thousands and thousands for a day's work its a no brainer to have a go.

[davidd]

Yes, and we are currently the subject of an investigation which is hardly fair!

D

[shirepro]

Me thinks this is like lottery funding bids: lots of paper to shuffle and hoops to jump through. I think I might apply for R and D credits to develop some software to write R and D bids, and some more to detect if an application is false.

I guess the hard bit is evidencing expenditure was specific to the R and D project to get your tax credits?