Why is R&D important in the Software industry?
The software industry is one of the few sectors prevalent in claiming R&D year on year but that doesn’t mean to say a lot companies aren’t missing a trick. Even today, with R&D Tax Credits becoming more and more widely known, there are still businesses not claiming as they feel they don’t qualify or they just simply don’t have the time to look into it. Claiming R&D can allow developers to invest more heavily in themselves and take new risks, opening the door to new rewards.
The software aspect of R&D isn’t just targeted at software developers exclusively, any business from any industry can make a claim if they’re developing new software in house, providing they meet the guidelines set out by HMRC. This allows for companies to develop their own sector specific software that can boost their industry to new levels of automation and efficiency.
What qualifies for R&D in the Software industry?
With software development moving so rapidly over the last few years, and no one really able to know what’s already out there; HMRC have shifted their guidelines away from simple coding and web development. They’ve instead adjusted their focus to more complex areas of software development, examples of which are below:
- Developing new bespoke software
- Development of AI or artificial learning
- Data processing and improved security
- Development of software used to control hardware such as machinery or robotics
- Creating new data management techniques
- Integration of different applications and tools to improve system capabilities