Research and development involves those activities that create or improve products or processes and includes the following; research to discover new knowledge, applying new research findings, formulating product and process designs, testing products and processes, modifying formulas, products, or processes, designing and testing prototypes, designing tools that involve new technology and designing and operating a pilot plan.
Costs attributed to research & devlopment are wriiten off to the profit and loss accounts as incurred. Tax credits received and receivable under the SME scheme are included within the tax charge for the year.