R&D activities in Software.
In the 21st century digital transformation is perpetual meaning that the products of key software development activities such as Artificial Intelligence (AI), and machine learning (ML) become further incorporated into our way of life.
Software development activities often involve an advancement of current technological knowledge and capabilities and any associated activity related to this advancement can be considered research and development.
The development of new technology is almost never straight forward, with significant trial-and-error required in coding and other activities before success is achieved. The associated resource used by companies during this product development and testing phase can qualify for relief.
Computer Science and Information Technology is continuously changing, developing and evolving in more innovative ways than ever.
Our clients have been able to successfully obtain additional funding to boost their business activities as many initial development phases are pressured by cash-flow.
Ben McDonnell
Tax Consultant
What types of activities qualify then?
Qualifying activities are wide-ranging but will depend on a number of factors, such as the level of technical uncertainty, the level of design input and responsibility, and the level of risk.
However, in all cases, there should be an advancement of knowledge or capability in the sector.
Some examples of qualifying activity are outlined below:
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Developing new or enhanced functionality in operating systems or software programs. - Development of new software development tools such as IDEs and application builders and version control tools.
- AI data processing and image analysis
- Developing data management and data capture systems and processes
- Robotics
Developing new or enhanced functionality in operating systems or software programs.Are you missing out?
No. of SME claims
12,165
Av. SME benefit
£63,296.34
Featured Case Studies.
Eugene O’Neill FCA CTA
Managing Partner
Eugene is a highly experienced R&D tax credit and Capital Allowances specialist, having led tax incentives teams within two multi-national practices prior to establishing the Inspired team.
A Chartered Tax Adviser and Chartered Accountant, Eugene places paramount importance on developing in-depth knowledge of his client’s businesses and operational activity, which places clients in the best position to identify and claim against qualifying R&D activity
Michael Heinicke FCA CTA
Partner
At Inspired Corporate Advisory, Michael is the Director with responsibility for tax technical knowledge and innovation. He works to develop strategic client and partner relationships to innovate how Inspired deliver maximum value to all stakeholders. Michael also provides guidance across functions to optimise the way in which services are delivered.
Prior to joining the team, Michael spent 18 years in PwC across Manchester and Belfast and was most recently a Tax Director leading the Innovation & Capital Incentives practice within Northern Ireland. Michael also previously led PwC’s Corporate Tax business in Northern Ireland between 2015 and 2018.
Colm Cavavagh ACA
Partner
Through both industry and sporting circles, Colm has amassed an extensive network of clients, collaborators and contacts which has been maintained and grown with his excellent relationship management skills.
Colm is a trusted advisor to many clients and peers. Colm is a Chartered Accountant with both practice and industry experience, and has vast experience in R&D tax credits, both from a practice and company perspective, giving him an insight into both best-practice and the needs and concerns of clients.