This news item is an update on Kingly Brookes 'earlier article on this subject on 12 August 2011. HMRC have now published their guidance which may well enable companies who thought that they were unable to claim fully for the consumables costs associated with production trials, prototypes and manufacture of “first of class items”, where there was any intention of selling the output of the trial, prototype or first in class asset, to claim for costs incurred.
Please visit Kingly Brookes' website to learn more about this potential opportunity on R&D claims for the production of goods and services.
Our View
Kingly Brookes has been closely involved in the feedback to HMRC on the formulation of this guidance prior to publication and we welcome the clarification of the guidance and practice in this complicated area of the legislation.
if you would like to discuss the application of this, or any other aspect of the R&D tax relief to your company then please do not hesitate to contact John Moore on 0207 292 8850 or at john.moore@kinglybrookesllp.co.uk
About Kingly Brookes
Kingly Brookes is a firm of chartered accountants based in Cambridge and London specialising in working with technology companies to optimise their claims for R&D tax relief. We combine a deep technical knowledge of the working of the two schemes together with a practical hands on approach to claim preparation proven to optimise your claim potential and ensure certainty over your claim outcome.
_______________________________________________