If your company is developing new software architectures, algorithms, systems or services, there is a good chance the you will be able to claim relief.

But we don't do any R&D ...
Are you sure? The development of new software products and systems will normally involve the resolution of technological challenges and even when a product has been released, the fast-moving pace of technology standards can often be a key driver for further enhancement. The definitions of R&D are widely drawn and in our experience companies have more qualifying activities than they think.

Sample qualifying activities
New product development includes:

• Developing new architectures, data models, interfaces, algorithms, protocols and languages.
• Systems integration work that involves:
  • The unexpected behaviour of individual components.
  • Inadequate or incomplete information about components.
  • Unexpected behaviour between or amongst the components.
• Making an appreciable improvement to an existing system that is not readily deducible by a competent professional. Improvements might be in the areas of performance, security, scalability and availability.

An effective claim requires a comprehensive and authoritative review of activities and costs and a detailed understanding of technological issues. A claim can only be optimised by involving technical staff that come from an IT/Computer Science background, who understand the nature of the activities undertaken and who can evaluate this in the context of the HMRC guidance.

For more information download our brochure on R&D tax incentives that are available to encourage innovation in the UK (PDF, 68KB).