Research & Development

SOFTWARE

If you operate a technology or software business and you’ve recently developed new or improved products or processes, then there is a strong chance that you could benefit from a Research and Development (R&D) Tax Credit claim.

With the pace at which the world of software development moves, and the complexity of the different jargon used, it was perhaps destined to be one of the trickiest areas for R&D incentives advisers to tackle when it comes to identifying R&D tax relief opportunities.

And they’re not the only ones that have been left confused by the R&D guidelines. HMRC themselves have drafted in their IT gurus to help their own specialist R&D incentives inspectors to ensure they stay up to speed on the industry’s advances and the IT gurus have also been helping to review claims.

Almost every business will be doing some sort of activity that meets the criteria for claiming the incentives. But sadly, a lot of these businesses are missing out, either completely by making no claim at all, or in part, by not including everything they can. And with up to 33.35% cashback available on qualifying R&D spend, that’s criminal!

WHAT TYPE OF SOFTWARE DEVELOPMENT PROJECTS CAN QUALIFY FOR R&D TAX CREDITS?

The key parts of your projects to consider in respect of whether you will qualify for R&D incentives include:

SOFTWARE

WHY IS RESEARCH & DEVELOPMENT IMPORTANT IN SOFTWARE INDUSTRIES?

It’s essential that businesses within the software industry are driven by innovation to ensure they are remaining competitive in their ever-changing world. Developing new products, or improving existing ones, is a vital part of any software company’s operation. We’ve spoken to hundreds of software businesses that think they don’t qualify for the relief, which makes the eureka moment all the sweeter when we show them how they can.

That’s because R&D boils down to two qualifying criteria. In very straightforward terms, you should be looking at R&D closely if 1) You’ve CHANGED something (anything) in terms of what you make, how you make it, or you’ve added to your technical knowledge pool; AND 2) There have been CHALLENGES in order to make those changes work, i.e. it’s taken some thought, some time and some testing.

WHY COOPER PARRY?

In three years we’ve put more than £61 million back with businesses. We’ve obtained in excess of £3 million for companies that had already claimed. And we’re a member of the government’s Research and Development Consultative Committee.

Our Research and Development Partner, Mark Frost, is a dedicated R&D incentives specialist who specialises in software. Not only does he understand the R&D legislation but he also understands the technical jargon that can help identify the elements of your projects that qualify for R&D incentives.

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Reviews

PAUL, JAN 2024

“Excellent service for our first year audit.”

DAVID, JAN 2024

“R&D Claim: The results were better than expected. The additional cash will enable us to increase profitability”

ALAN, JAN 2024

“R&D Claim: The results were not as good as previous years. The additional cash will allow us to further invest in our R&D program.”

STUART, JAN 2024

“Great to have a personal relationship with the whole team. Always willing to help. Sometimes a little slow to respond on some issues (but then again so are we). Audit team are brilliant, bar audits far to long now owing to the amount of sample data we have to provide, which is hard when you have a small team and limited time.”

CLAIRE, JAN 2024

“Great team, and much improved communication and pro-active engagement over the past three months.”

MARK, DEC 2023

ROB, DEC 2023

“R&D Claim: Having worked with the R&D team at CP for a few years now, I had a good idea what to expect. As per usual they exceeded our expectations. The additional cash will allow us to invest in our fleet.”

RICHARD, DEC 2023

“Excellent service. Need to ensure pricing is competitive.”

DAVID, OCT 2023

“Good insights provided. Nice team to deal with. Need more consistency of team members and where this is not possible a better handover should be provided to new members. Need strong manager oversight on all audits, in particular where there are complex transactions etc. Improved communication between audit team and finance functions within the business.”

LUCIA, JUN 2023

“Final Packs are taking too long, communication”