Overview
Qualifying at a Glance
There is a huge scope of what qualifies for R&D tax credits in software and IT, so much so that many people miss out on opportunities due to assuming their work won’t be eligible. Perhaps software development is not your main trade or you’ve made an improvement to a system that already exists. This is eligible! Other examples include innovations that involve the following:
- Machine Learning (ML) – Creating algorithms that enable computers to learn and get better at tasks without explicit programming.
- Artificial Intelligence (AI) – Creating machines capable of performing tasks and making decisions that typically require human intelligence.
- Internet of Things (IoT) – The network of interconnected physical devices and objects that can collect and exchange data over the internet.
- Big Data – Vast volume of structured and unstructured data, analysed for valuable insights, surpassing traditional processing.
- Software as a Service (SaaS) – A cloud-based software on a subscription basis without the need for user installations or updates.
- Virtual reality (VR) – An immersive computer-generated 3D simulation for lifelike experiences and interactions.
- Augmented Reality (AR) – An overlaying computer-generated content on the real world to enhance user perception.
- Software development – Developing and maintaining computer programs to meet user needs and solve problems.
You are in a strong position to qualify for R&D claims if you have:
Ask Yourself
- Did you conduct R&D activities to develop new products, processes, or services or to improve existing ones?
- Did the R&D activities involve the resolution of technical uncertainties or challenges that could not be solved by using existing knowledge?
- Did your products or services require extensive trial and testing throughout the creation process?
If you are answering yes, you may qualify to claim back up to 33.4% of eligible R&D expenditure through HMRC’s R&D Tax Relief Initiative. Contact one of our R&D tax credit specialists to seek further advice on how to proceed with your R&D claim.
The claim process
We understand the complications that can often arise when completing an R&D claim, not to mention the significant amount of time it can consume, diverting your attention from driving your innovation forward. That's why we have streamlined a transparent and hassle-free process that follows a step-by-step approach from start to finish.
Throughout your R&D claim process, we maintain open lines of communication tailored to your preferences. Once we have compiled comprehensive technical and financial reports, we take the responsibility of submitting them and proactively follow up with HMRC, leading the communication on your behalf. Often, our next contact with you brings the exhilarating news of success and positive outcomes.
Step 1
We'll gain your authorisation via our client instruction form/NDA. This will enable us to discuss your R&D activities along with your current tax position.
Step 2
We'll analyse the profit & loss (P&L) statement of the business while facilitating your technical call. This step aims to determine whether your case is feasible from both technical and financial perspectives.
Step 3
Once our experts are confident that your case meets the R&D eligibility criteria, we will then gather all the required technical information and financial documentation according to HMRC's standards to support your case.
Step 4
At this stage, we initiate a stringent compliance procedure that we have developed in-house to audit your R&D claim application. We verify whether it meets the defined standards before submitting it to HMRC to ensure a positive outcome.
Step 5
After conducting a comprehensive review of your R&D claim, including all required documentation, the application will be forwarded to HMRC for further processing.
Step 6
Our team maintains continuous contact with HMRC regarding your case. If any queries arise, we address them on your behalf using a highly systematic approach to maximise your outcome while minimising any delays in your repayment.
Get Started
Our hassle-free and streamlined process is waiting for you to get started and to make you feel confident throughout your R&D claim application.
R&D Tax Credit Calculator
What is your industry?
What have you spent in the last two financial years?
Please take your year end into consideration as you can only claim for the past two closed financial years.
Spend (Exclude Sub contractors)What expenses are included?
Has your company turned a profit over the past two financial years?
Why is profit & loss important?
- HMRC will award you differently depending on your current tax position. If your company ended the year in profit, the maximum percentage you can claim back is commonly 24.7% of your R&D expenditures.
- If your company is a loss-making entity, the maximum percentage you can retrieve is commonly 33.4% of your R&D expenditures.
- In most cases, you will receive a cash repayment deposited into your account.
You can claim back
Book a free consultation
Or call us on 0161 457 8100
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