Cardens A-Z Guide of Business Expenses You Can Claim: R is for…
RESEARCH & DEVELOPMENT
The process of inventing and solving the associated problems is called research and development (R&D). Companies can more than double the tax deduction given for the costs of R&D.
The new ‘stuff’ could be a product, a material or a process which has been changed or improved. For example if you find a way of speeding up a production line, or changing the process to cope with a new type of material, the work to achieve that aim is R&D which should qualify for the tax relief.
If you rent or own office space and incur costs for repairs you can claim tax relief for these costs. However, do be aware that there are guidelines set by HMRC as to whether certain expenses are repairs or property improvements. If you are unsure, before planning to do some work contact your accountant to find out the tax treatment of the specific work you plan to carry out. You can claim tax relief for minor repairs to business equipment and sundry repair items used for business such as batteries and light bulb costs.
If you work from home, you may be able to claim tax relief on repair costs for your property. If the repair relates solely to the part of your property that is used for business then you should be able to claim the full cost of the repair. However, if the repair is in a part of the property that has mixed use, for business and non-business, then the cost is subject to the business use of that room.