Question:
I am thinking about becoming self-employed. The intention is to make surgical devices and to develop other products I have invented. What I would like to know is this. I have a patent and it is maintained by a yearly renewal fee. When I start self-employment, I will be developing the prototypes myself. Can I claim the cost of maintaining the patent prior to 7 years when I become self-employed?
Arthur Weller replies:
See www.hmrc.gov.uk/manuals/bimmanual/BIM45950.htm,%20 that generally the cost of maintaining patents is an allowable business expense (see the guidance for specific rules). See www.hmrc.gov.uk/manuals/bimmanual/BIM46350.htm that a business expense incurred within seven years of starting the business, that would have been allowed had it occurred after the business had started, is allowable as though it occurred on the first day of trading.
