I have a client who has developed some software for internal use, which they will use in order to service their clients. However, in a few years (2 or 3) they are considering the possibilty of turning it into a SaaS revenue stream.
It qualifies as an R&D project. At this stage, I want to capitalise the development costs & depreciate over 3 years, claim AIA and the extra 130% R&D.
I've 2 questions:
1. Am I right ((and if not what should I do - appreciate that makes it 3 questions)?
2. What should I do in 2/3 years if it does turn into a SaaS income generator?