Do you qualify?

Your business could qualify, even if you don’t think so

R&D tax credit claim advisors
R&D tax credit claim advisors

The Tech industry is fast-moving and constantly evolving. That’s the biggest reason why the government’s guidance surrounding what qualifies as an R&D Tax Credit claim for Tech development is so unclear.

If you’ve been feeling confused, you’re in good company. Even the most experienced R&D Tax Credit advisors find the rules regarding Tech claims almost impossible to interpret. That’s because those advisors work broadly across the tax credit spectrum, and don’t have the niche Tech industry knowledge required to identify the hidden opportunities and take full advantage of the scheme on their client’s behalf.

SSP does. No other R&D Tax Credit advisor in the UK has the specialist Tech industry knowledge we’ve accumulated over the 25 years we’ve been in existence.

Who qualifies for Tech development R&D tax relief?

Any business that is developing new Tech products or systems or is investing in the technological enhancement or improvement of an existing product or system is potentially eligible for R&D Tax Credits.

That includes software development companies, software houses, and businesses that develop software projects in-house, as well as:

Products or systems potentially eligible

  • Standalone Applications

    Developing your own unique standalone application, even if that involves improvements such as maintaining compatibility with legacy technology or improved browser compatibility.

  • Solution Partners

    Developing software and tech for alongside major software platforms (Microsoft, Sage, Salesforce, Epicor etc).

  • Systems Integrators

    Bringing together disparate technologies to develop something new.

  • 3rd Party Development

    Doing development for another company (could be eligible under the ‘RDEC’ scheme).

Projects potentially eligible

  • New projects requiring state-of-the-art software, or existing projects that require enhanced functionality.
  • Software that improves the capability of an existing product or system, such as adapting a bespoke system so that your current technology can integrate with it (incl. new hardware, web programs, legacy technology.)
  • Software development tools.
  • Operating system or application software tools.
  • Database software, operating system, or programming language extensions.
  • Software that advances AI or machine learning.
  • New methods of data management and data capture, manipulation, transmission, or protection.
  • Software to run new computer hardware.
  • Software for cloud applications.
  • Software for the healthcare industry.
  • Software for video games, visual effects, and virtual reality.
  • Software to run on devices which have pre-installed operating systems (such as smartphones and tablets.)
  • Integration of hardware and software platforms.

Five reasons why many Tech developers don’t claim R&D tax relief

Our project involves more than Tech development

Even if Tech development is only a minor or satellite part of your project, it could still be eligible for R&D tax relief. You can also claim for other factors involved in the development process, like project management, finance activities, and creating the additional tools you need to build the technology. All those elements are eligible for R&D Tax Credits too.

There isn’t a financial risk

Most, if not all, Tech projects have the potential for failure. It doesn’t matter if you’re not taking a monetary risk in undertaking the project, you’re probably still taking a financial risk in terms of the resources you’re expending to make the project happen, with no guarantee that it will be a success. If the outcome of your project is uncertain, you will very possibly qualify for R&D Tax Credits.

We used agency workers / freelancers / subcontractors on the project

Everyone who performed work on your project, whether they’re employed by your company full-time or sourced from outside your company (and even if they’re based in another country) can be included in an R&D Tax Credit claim.

We’re only improving existing software, not developing new software

That doesn’t matter. Even if that software already exists, if you’re building or investigating a solution to overcome a challenge which will improve that software’s functionality, your project will qualify for R&D Tax Credits.

We’ve capitalised our software expenditure to spread the cost over multiple accounting periods

Spreading the cost of your expenditure won’t prevent you from making an R&D Tax Credit claim. However, it may affect the size of your claim. In these cases, SSP’s R&D tax specialists can inform you of other tax strategies that may be more beneficial and advise you on the best action to take.

Four questions to consider

  • Are you investing in the development of a new or improved software product, or software product capability?
  • Are you bearing the risk of uncertainty for the outcome of this development?
  • Are you developing a software solution that, to the best of your knowledge, doesn’t currently exist or isn’t readily available?
  • Will your work advance overall technical knowledge or capability? Your project doesn’t have to be a major undertaking. Even if you’re creating a line of code that will make a system more efficient, you could be eligible for R&D Tax Credit relief.

Start your claim

If your answer to any of the above is “Yes”, you almost certainly qualify for R&D Tax Credits. Contact us today to start your claim and we’ll make sure you receive the R&D Tax Credit benefits you’re entitled to.

Start your claim