PSS TAX · SERVICE 01
AN R&D TAX CREDIT SPOTTER GUIDE
The Simple Test
R&D may be taking place where an engineering business is trying to achieve a new or appreciably improved engineering capability and experienced engineers cannot readily determine whether it will work, or how to make it work in practice.
It doesn’t have to mean inventing something completely new. R&D can arise when engineers are trying to overcome the limitations of existing equipment, materials, processes or engineering methods to achieve a genuine, non-routine technological improvement.
ENGINEERING
Don’t rule it out just because…
The project failed
Similar equipment already exists
It was developed for a customer’s specific requirement
The client doesn’t have an “R&D department”
It wasn’t patented
Only part of a much larger engineering contract involved the difficult work
If you’re unsure, don’t try to determine eligibility yourself. Refer it to PSS Tax and we’ll assess it.
R&D vs probably not R&D
Potentially R&D
Developing a control methodology where established approaches couldn’t achieve the required accuracy, stability or performance, requiring design changes, testing and iterative development.
Probably not R&D by itself
Installing and configuring a standard control system in accordance with established manufacturer specifications.