Hello,
If after getting a working prototype is it possible/difficult to convert this into a standalone board?
Upload the final version of your program. Remove the processor from the board. Connect a pull-up resistor to RESET. Connect a resonator or crystal (plus capacitors) to XTAL1 and XTAL2. Connect 0.1 uF across all VCC / GND pairs. Connect all the accessories to the processor. Apply power to all VCC / GND pairs. Enjoy.
Purchase a replacement processor. Repeat.
(If you get a "blank" replacement processor you should install a bootloader before the stuff above.)
I've done some research and answers seem to vary from having to convert the Arduino code to AVR first
Huh? What is "AVR code"?
Any advice /pointers appreciated and I apologise for any terminology I have used wrongly!
Other than "Arduino code" and "AVR code", your terminology is fine.