R&D Tax Credits for Software Developers

 

HM Revenue and Custom’s research and development tax credits scheme has provided £21.4 billions worth of tax relief over 240,000 claims between 2000 – 2017.  And according to HMRC, a total of 36,820 (2015-16) R&D tax credit claims were made by SME companies (up to 500 employees) 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