Within the current economy, the role of Information
Technology (IT) has taken centre stage in many business
functions. In addition, a large number of firms have undertaken
the development of their own IT systems (software/hardware)
either as part of mainstream product development or as part of
their effort to improve internal processes and operations.
Consequently, activities such as software development are not
just confined to software houses; indeed firms in the non-IT
sectors such as finance, leisure and retail also develop their
own software.
Is R&D for the "staff in lab coats"?
There is a common misconception that the term Research and
Development (R&D) for tax relief purposes only relates to
progressive 'blue sky' research activities. The latest
Department of Trade and Industry (DTI) guidelines, published in
March 2004, state that R&D for tax relief purposes takes
place when a project seeks
