R&D tax relief: accountancy: FRS105 s13
FRS105 is a UK accounting standard which can be adopted by entities who qualify for the micro-entities regime.
Section 13 of FRS105 deals with the accounting treatment of intangible assets other than goodwill, which includes guidance on the accounting treatment of R&D.
How FRS105 s13 treats the expenditure
FRS105 s13 requires all R&D expenditure to be written off as incurred. It does not permit any expenditure on R&D to be recognised as an intangible asset.
HMRC officers with questions concerning accountancy should consult an HMRC compliance accountant