R&D Tax Credits explained

We'll help get the most out of your R&D Tax credit submission

In 2001, the UK government set up the R&D Tax Credits scheme to financially reward businesses that are investing in innovation and R&D activities.

It aims to make the UK the global leader in software development and innovative technologies and providing companies with a monetary incentive will give them the freedom to develop better Tech and innovate even more.

R&D tax credits – the bottom line

For every £100 you spend on R&D related activity, you could be reimbursed between £10-£30 in tax credits. That’s money which will go straight back into your account so that you can invest in more R&D, and your business can grow. But a vast number of Tech and software developers are missing out on this incredible opportunity because they don’t realise the work they are doing is eligible for the scheme. Or, if they do claim, they’re not claiming for everything they are entitled to.

There’s a lot of misunderstanding about R&D Tax Credits. That’s why we’re here to demystify the process and make sure you receive your maximum tax credit entitlement for the important, ground-breaking work your company is doing.

How does the R&D Tax Credits scheme relate to Tech?

If you’re working on a Tech project that’s seeking to advance overall knowledge or capability in computer science or information technology, you’re probably eligible for R&D Tax Credits.

Usually, the advance will be in the technology layer of your project – for example, an improvement in the design, algorithm or architecture of the software – so that your work ultimately furthers understanding of the technological science involved.

For your project to be eligible, you will have to show that the Tech you’re developing solves a legitimate technological problem. For example, by re-architecting the way disparate technologies integrate and communicate with each other; or improving the capabilities of a system by developing software to increase its speed. HMRC needs to see the problem you faced, how you overcame it, and what the end result was (it doesn’t matter if it was a failure, it’s still eligible).

R&D Tax Credit Calculator

For a general estimate of your potential claim value, use our R&D Tax Credit Calculator

Calculator

Activities potentially eligible

Identifying uncertainties
Conducting feasibility studies
Planning, managing, and testing
Analysis, design, and creation of a new solution or technology
Investigating new and competing technologies
Producing supporting documentation for your project

Costs potentially eligible

Staff costs

incl. full-time staff, subcontractors, freelancers, agency workers.
Software licence costs

incl. buying and renewing licences, yearly maintenance fees for upgrades and support, and subscription software.
Consumable items involved in the R&D process

incl. electricity, heat, lighting, materials.

You may also be able to include a wide range of staff roles in your R&D Tax Credit claim, providing they are members of your R&D team: for example, R&D Manager (and senior management team), Lead Developer, Project Co-Ordinators, Engineers, Testers, Cost Accountants. SSP have built up benchmarks for each type of role, so we will know what a realistic amount of time to apportion to each role.

Do you qualify?

Don't miss out by making assumptions

There are a tremendous number of ways that your Tech company can potentially claim for R&D tax relief. To date, SSP has helped clients make over 500 claims for R&D Tax Credits.

We don’t do R&D!

If you’re a software developer, or if your business employs software developers, there’s a good chance you are eligible for R&D Tax credits.

R&D was only a small part of the project

That doesn’t matter. Even if R&D is just a minor element of the work you’re doing, you may still be able to benefit from the R&D’s Tax Credits scheme.

I looked into it, and I wasn’t eligible

When you’re not familiar with the finer points of the R&D Tax Credits scheme, it’s easy to read the government’s guidance and believe the work you’re doing isn’t covered. Don’t make that assumption. SSP has been a significant player in the UK Tech industry for more than 25 years, and we have spent the last eight years focused solely on R&D Tax Credits claims. We’re expert at identifying claims opportunities that everyone else, including most generic R&D tax advisors, repeatedly overlook.

It’s too complicated. I don’t have the time

That’s what we’re here for. After talking with you and gathering all the information required to support your claim, we’ll complete the paperwork, write the most compelling supporting documentation, and then make a claim on your behalf. You won’t have to get involved. That means you’ll be free to concentrate on development work, secure in the knowledge that our specialist expertise has maximised your claim to its fullest potential.

Talk to us

If you’d like to find out more, or if you’re ready to maximise the amount of credit you can claim from the R&D Tax Credits scheme, our expert advisors are here to help.

Start your claim