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Software Solution Delivery costs HMRC guidance

Software Solution Delivery costs HMRC guidance

Hello everyone 

I recently acquired a Ltd client. Ltd provides Software Solution service delivery, coding, unit testing, integration testing. Ltd oversee solution delivery and outsourced coding of system. The costs for all the above are nearly 65% of turnover.

What’s the accounting treatment of this costs?

How to apportion this costs between capital and revenue?

R&D tax relief can be obtained?

Feedback will be appreciated.

Thanks

 

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20th Mar 2019 08:09

I really don’t think it would be.

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By MNM
to Tim Vane
20th Mar 2019 08:38

Thanks Tim
But what's the accounting treatment of these costs?

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20th Mar 2019 09:02

You've lost me with your question. Why do you need to apportion costs if you know what they are?

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By MNM
to lesley.barnes
20th Mar 2019 09:20

I was reading HMRC manual that software development costs can be capitalized. Preliminary and application development cost can be expensed and post implementation costs can be capitalised.

I was unsure that I am classifying them correctly! if not then how to treat these costs!

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