The definition of eligible R&D mirrors the principles of the OECD Frascati manual which is regarded Internationally as setting the benchmark for identifying R&D activities.
The Frascati Manual is an “internationally recognised methodology for collecting and using R&D statistics”, and is a crucial tool for policymakers in determining how R&D core and supporting activities are defined internationally.
Software claims have faced tremendous in previous years, but the bulk of claimants are still in this space. It’s important for software companies to understand how their core activities are defined. TCF Services can assist in identifying core and supporting activities via our R&D Tax Compliance Health Check service.
We have picked out excerpts from the manual that will assist R&D software companies to better understand when software development qualifies as eligible R&D, as well as some basic definitions and conventions that are helpful in getting the most value from the information included in the Frascati manual.
To download the excerpts relating to software, click the link below.