A friend asked me a question regarding Research & Development relief.
He has written a software package. His customers are local shops who subscribe to his software, Client then markets the shops products to end consumers, deals of the day, stock that needs quick clearance etc. The software provides real-time demand based technology to local stores for items local customers actually want, helping stores to reduce wasted stock and giving consumers access to products they want locally.
Firstly can he claim R&D relief at all? Secondly can R&D relief be claimed where there is no corporation tax due because he didn’t begin trading in the financial year? He falls under small and medium sized entities.