After meeting with this client it was clear that much of their work would qualify as software development R&D. Their work focusses on developing new and innovative programmes and applications. These programmes and applications often include multiple user interfaces, compatibility with several devices and communications with Global Positioning System (GPS) and other networks. Although this type of work is a strong indication of R&D, the client hadn't previously made a tax relief claim.
Throughout the period of the R&D claim, the client had conducted five research and development projects. These projects required bespoke and innovative solutions to overcome software development challenges. Some of the areas where the software development focussed are:
This type of software development, which requires significant research and testing, qualifies as R&D. If you would like to find out more about what work qualifies as Research and Development, visit the R&D Tax Credits page of our website, or this video series on Youtube.
Zest Research and Development were able to offer specialist advice to maximise the clients return from their tax credit. By utilising the tax credit across companies within the group structure, the total value was increased from £38,000 to £50,000. That's an extra £12,000 to re-invest into more innovative projects.
If you think you may have performed R&D, or are interested in finding out more about the tax relief available, Zest R&D can offer specialist advice. Get in touch to discuss any projects that may be eligible, or how best to plan for any future Research and Development.
Find out how how companies can meet the deadlines for R&D tax credit claims and all the key R&D tax relief changes coming into place in 2023.
Costs involved in R&D are tax deductible and there are two ways in which R&D costs can reduce a companies Corporation Tax liability. Firstly – with the usual deduction of 100% of the cost from your companies profits. In addition, the R&D Tax Credit scheme allows a further deduction of 130% of eligible R&D costs, […]
Chancellor Jeremy Hunt has announced a series of changes to the UK research and development (R&D) tax relief regime, including a cut to the deduction and credit rates for the SME scheme, the R&D tax credit. The rate of the large company scheme, the R&D expenditure credit (RDEC) will be increased from 13% to 20%, […]