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'Shed' - a different slant on the question

Carpenter is building a workshop as a prototype of a potential product, and which he will also use

Self-employed carpenter is building a workshop in the garden of his rented property as a prototype of a product of which he hopes to sell a few each year. Promotional pictures of it will be shown on his website, and the building of it will be experimental and a learning experience for him. And he will use it a as a workshop in which to work on other future projects. Is it possible to claim the expense of the materials, possibly as a research and design item?

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14th May 2018 17:01

R&D tax relief is only for revenue expenditure. The construction of a workshop will almost certainly be capital expenditure. May get 100% FYA.

What would make this workshop different to any other workshop?

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to Adam12345
15th May 2018 06:34

Adam12345 wrote:

What would make this workshop different to any other workshop?


That may be too restrictive. There's more to R&D than end products. If he develops techniques that could move carpentry forward, or new parts, that could qualify.

But he does have to be an SME or large company.

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15th May 2018 06:42

Sounds like he's made his first sale - to himself.

You better check out the rules (direct and indirect tax). He might not like what you have to tell him.

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