R&D Tax Credits are available to software developers making technological advancements and pursuing innovation. Through the government’s R&D Tax Credit scheme, companies can benefit from Corporation Tax relief or cash credits.
The UK Software & IT sector is at the forefront of economic growth and innovation, with businesses continually adapting to new technologies, digital transformation, and evolving market demands. From artificial intelligence and cybersecurity to cloud computing and automation, companies face complex challenges but also opportunities to deliver cutting-edge solutions.
R&D Tax Credits provide valuable funding, and many software projects qualify, particularly where businesses are working to achieve an advance in technology. Eligible projects may include developing new systems, improving performance, or integrating innovative tools – helping companies accelerate development, boost productivity, and achieve sustainable growth.
Which activities qualify for R&D Tax Credits in the Software sector?
Developing new or improved software platforms, applications, or systems
Creating bespoke solutions to overcome complex technical challenges
Enhancing performance, scalability, or interoperability of existing systems
Designing innovative cybersecurity tools or data protection methods
Integrating emerging technologies such as AI, blockchain, or IoT
Developing cloud-based infrastructure, automation, or optimisation tools
Prototyping, testing, and debugging new software or IT solutions
Improving algorithms, data processing, or machine learning models
Various qualifying costs and expenses
Software can also qualify as an R&D project if it serves a wider advance in science and technology and contributes to a larger goal. Find out what qualifies for R&D tax credits here.
Did you know?
Under HMRC rules, your business does not need to succeed to qualify. If you have attempted to overcome technical uncertainty by developing new software systems, digital tools, or IT innovations, you could be eligible for R&D Tax Credits.
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At randd, our results speak for themselves: we’ve delivered thousands of successful claims, securing hundreds of millions in R&D Tax Relief for our clients.
Our specialist team also offers free, no-obligation health checks on rejected claims, HMRC enquiries, or existing submissions that could have been more rewarding.
Ready to maximise your return? Contact our expert teamtoday and start your R&D Tax Creditsclaim with confidence.
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