R&D Tax Credits in IT & Software – Daniel James Tax

R&D Tax Credits in IT & Software

If your business concerns software development, then there is a greater chance that your innovation could be eligible for the government’s R&D tax incentives. We have already seen a lot of SME’s that have developed in the IT & Software sector, hence, it is time for your business to take advantage of this scheme!

Check if you are eligible for R&D Tax Credits

By answering the questions below we can provide you with personalised online eligibility check.

Step 1 of 6: Your Company Details

Is Your Business a Limited Company?
Research and development tax credits are only available for limited companies registered in the UK.


What type of software projects can be legible for R&D Tax Credits?

  • Essential training to support the application of R&D.
  • The formulation of technical specs to support an R&D project.
  • Testing for product or software.
  • Examination of new and opposing technologies.
  • Administering feasibility studies for possible software concepts.
  • Research and development that involves innovative data management strategies and representations.
  • Research and development that involves innovative data capture techniques.
  • Implementation of extensions to current database software or operating systems.
  • Designing and developing of plugins or add-on tools to improve the functionality of current applications.
  • Developing new state-of-the-art software to aid in key operational tasks.

Who can qualify for software development R&D tax relief?

Software has continued to evolve. For instance, the number of well-established branches have continued to develop including mobile, cloud, AI, etc. Additionally, new applications for software has also developed such as augmented reality, robots, IoT and more are yet to come.

Any company that is involved in software development could be legible for R&D tax relief:

Software houses: Might develop and iterate software, provide business tools, Software as a Service (SaaS), or enterprise resource planning (ERP) systems.

Software development companies: Basically, a company that employs teams of software developers who can assist other businesses in their software projects.

Businesses that develop software in-house: Any business that conducts a bespoke software development project.

R&D software project and activity expenses:

  • Overcoming doubts.
  • Utilities and Consumables.
  • Software licensing charges.
  • Costs for employed staff including employer’s National Insurance and pension contributions, gross salary, etc.
  • Agency staff, subcontractors, and freelance professionals.