Software

Research and development claims in the software industry. 

The average R&D claim value in this sector is £57,000

The IT industry is fast moving and constanly evolving so it’s no surprise that this sector is one of the largest in claiming R&D tax credits. Last year, companies in this sector claimed back £600 million to allow their innovations to continue.

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.

The process of building a new software from the ground up is a long one; it requires a lot of trial and error from start to finish. These steps can be looked at when completing an R&D claim and can make up a significant amount of the cost of time spent on a project.

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:

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:

Testimonials

"We just wanted to say a massive thank you for helping us complete our recent R&D tax claim, you have helped us for a few years now but as always you make the process so simple and easy. Thanks to you we have now reduced this years corporation tax bill by three quarters. We have recommended your services on many occasions to other businesses and will continue to do so. The feedback we get from people we have referred you to is fantastic and it’s a massive credit to you and your organisation, we look forward to working with you for years to come."
Barrow Electrical
"To R&DTaxCredits.org, I wanted to send this testimonial for your work on our R&D Tax return. We never thought we had a claim for R&D but after a call, you said there may be scope to make a claim based on some of the work we do. You effortlessly reviewed several projects that we do and suggested we had a claim that we could back date two years later. Last week we received a payment over £5,000 which we would never have had without your knowledge and support. I could not be happier with how simple you made the process and thank you for your patience waiting for details from me! We have already collated evidence for this year’s claim and wouldn’t hesitate to recommend you!"
Empine Group
With the help of R&DTaxCredits.org, a Signage company based in Preston, Lancashire has received just over £16,000 for their efforts in innovation and problem solving. The family run business offer a full design and install service for signage in an array of products such as vehicle graphics and wrapping, shop signs, graphics, boards, and banners. The qualifying projects included solving problems on site; making alterations to designs to suit a specific setting; and research into how different materials, glues and paints react when used together. This cash injection will allow the company to invest in themselves and continue to grow.
Lancashire Signage
“I’d like to thank Dan for all his work in the background securing us a R&D tax credit. As a company we were unaware of the fact we could claim tax back on the research and development part of our business and had always accepted it of as an expense we could do nothing about. However, after a short conversation with Dan, we decided to ask R&DTaxCredits.org to act on our behalf and this has ended up with the refund by the tax department being paid into our bank. I wish we’d investigated this years ago as the amount was almost £29,000, which makes the amount we pay in tax a little more tolerable.”
Acorn Electrical Supplies
"We’d like to thank Dan and the team at R&DTaxCredits.org for helping us with our recent R&D claim. After a challenging year with COVID and uncertainty in the construction market, a large cash injection was exactly what we needed to ensure we could continue paying suppliers on time and continue with current works with no financial restrictions. With the help of Dan’s team we were able to claim over more than £70,000 back for our innovations and we couldn’t be happier. We wouldn’t hesitate to recommend R&DTaxCredits.org and we will continue to use their service in future."
SJH Renovations

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