Software R&D Tax Relief

software developer

R&D Tax Credits for Software Developers


HM Revenue and Custom’s research and development tax credits scheme has provided £26.9 billions worth of tax relief over 300,000 claims between 2000 – 2018.  And according to HMRC (October 2019), a total of 42,075 R&D tax credit claims were made by SME companies in the year 2017-18 with software development projects in the top three industry sectors.

Software project activities applicable for R&D tax credits

  • Development of new state-of-the-art software to assist with key operational tasks
  • Design and development of ‘add-on’ tools or plugins to enhance the functionality of existing applications
  • Implementation of extensions to existing database software or operating systems
  • Research and development into innovative data capture methods
  • Research and development into innovative data management techniques and representations
  • Conducting feasibility studies for potential software ideas
  • Analysis of new and competing technologies
  • Product or software testing
  • The creation of technical specs to underpin an R&D project
  • Necessary training to support the use of R&D

R&D software project and activity expenditure

  • Employed staff costs, e.g. gross salary, employer’s National Insurance and pension contributions
  • Subcontractors, agency staff and freelance professionals
  • Software licensing fees
  • Utilities and Consumables

We’ve helped hundreds of companies to make R&D tax relief claims and many of them involved innovative software.

Contact your nearest R&D Consultant to see if you can claim – 0800 195 7516 

Shelley Engineering R&D for London Underground

london underground

Special Air Conditioning Tank

Shelley Engineering are a specialist metal manufacturer who provide a bespoke end to end metalwork service, through from design, development, testing to programming and manufacturing​

​They embarked on a project for The London Underground which is infamous for being too hot during the summer. The high temperatures are primarily a result of the depth and size of the tunnels which has meant that there is inadequate space for the heat to dissipate along with there being more trains generating heat than ever before compounding the issue further. ​

​Shelley Engineering were tasked with a problem relating to the air conditioning tanks used in the trains which were leaking and cracking on a regular basis due to the constant expansion and contraction of the tanks caused by temperatures changes. The temperature would routinely change from an average of 30 degrees Celsius underground during the summer to an average of 5 degrees over-ground in the winter and would often spike over these periods. ​

​The team at Shelley Engineering sought to reduce the deterioration of the tanks by reviewing and improving the construction methods and materials used in making the tanks. ​

They had to embark on a multi-stage iterative process of investigating, engineering, prototyping, and testing in order to produce tanks that achieved the best balance of temperature resistance and overall durability versus the cost and ease of production. ​

Easy R&D successfully claimed 20.3% of R&D qualifying costs for Shelley Engineering.

Pipetto Smartphone Protection R&D

Smartphone Protection Development

Pipetto are a market leading British brand known for its innovative and premium leather technology accessories.

​They embarked on a project aimed to create protective shells for the next generation of smartphones, which maintained the premium aesthetics and functionality of their magnetic phone cases. ​

​The project responds to Apple’s continued iteration towards thinner products and the inclusion of features such as wireless charging which have introduced significant engineering problems associated with the phone cases’ structural integrity, durability, and ability to withstand impacts. ​

​This new shift towards wireless charging was significant as the efficiency of power transfer is dependent upon the RF-characteristics of the case and how it attenuates the handset’s internal antenna, meaning that certain materials and coatings presented a higher risk of degrading the Apple device’s Wireless performance. ​

​There were no other products available globally that were both magnetic and compatible with wireless charging, which meant Pipetto had to embark on a multi-stage iterative process of engineering, prototyping, and testing of materials and product design. ​

Easy R&D successfully claimed 24.7% of R&D qualifying costs for Pipetto.