This industry has exploded in the last few years and developers have been hard-pressed to keep up with what it all means for the tax they should pay. Roughly speaking, it is very similar to dealing with software build costs.
However, there is a contrast in that there is a definite upside and an intention to make direct turnover.. You should probably look at capitalising the most of it.. If you’re a startup and the costs are less that £100k you don’t lose out because of the annual investment allowance. It’s a bit of a win-win situation – robust accounts with less tax!
As ever, we would advise you to contact us, as the above is only a approximate guide and by no means addressing all the nuances of your particular circumstances.