Software R&D Tax Credits

The UK tech sector is no.1 in Europe and No.2 in the world, as it reached a combined market value of $1 trillion in 2022.

The software sector is built on innovation, which accelerated exponentially as recent events thrust the industry into the spotlight, as the world depended on them to safely connect everyone.

Software R&D such as workflow and finance solutions, data capturing and encryption, AI, IoT and SMART technologies, and more could all qualify for the R&D tax credit initiative.

R&D tax credits can offer an additional tax deduction of up to 130% (SME example) off all qualifying innovation spend (changing to 86% on all expenditure on or after the 1^st April 2023 (View R&D tax credit changes)).

Software R&D Tax Credit Examples

Qualifying software R&D projects must attempt to “resolve a scientific or technological uncertainty”. This is when a qualified professional cannot see a solution to a problem without exploratory testing and development.

The testing must attempt to fill a knowledge gap within the industry, and change or create a new product, process or service.

Software R&D Examples

Qualifying R&D product projects include the testing and development of new or modified:

Workflow, marketing, content management, CRM, document, finance, healthcare, etc. solutions
Video or online gaming creation
Data capturing, encryption, tracking, storing and security software
Database, operations systems or programming language
Algorithms or coding to integrate two or more platforms
Bespoke adaptation of off-the-shelf solutions
AI (Artificial Intelligence) technologies
Cloud based applications and solutions
Software to control third party devices such as mobile phones
Software to control a newly developed device
Resolutions for software issues

Hardware R&D Examples

Qualifying R&D process projects include the testing and development of new or modified:

IoT (Internet of Things), connected or SMART devices
Input devices, such as keyboards or touchpads
Computer components such as chips, circuit boards, cards, cooling mechanisms, memory, processors, etc.
Durability features, such as waterproof, tough
Resolutions for hardware issues

Contact Amplifi Solutions, R&D Tax Credit Specialists

Get innovation and R&D tax credit advice and support from an expert team.

Software R&D Tax Credits

Software R&D Tax Credit Examples

Software R&D Examples

Hardware R&D Examples

Contact Amplifi Solutions, R&D Tax Credit Specialists

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