I.T AND SOFTWARE

The integration of new Software & IT technology into another industry sector is considered an eligible R&D activity e.g.:

• robotics being programmed for use in extreme environments

• bespoke apps to track our wellbeing & connect the user to medical advice

• augmented reality (AR) & virtual reality (VR) being used for training purposes

• artificial intelligence (AI) & machine learning algorithms being used to analyse video data of railway infrastructure to identify structural changes

When considering the work that Software & IT developers undertake, the following are examples of eligible R&D activities:

• System feasibility

• Creating algorithms

• Bespoke metric analytics

• Custom databases or CRM’s

• Development of automated testing software

• Bug fixing – which required further testing and development

If your business is developing something new and is an advance in overall knowledge in a field of science or technology, then it’s highly likely that you should be claiming R&D Tax Relief. HMRC Statistics for R&D Tax Credit claims shows that the Information & Communication sector has the second largest number of claims overall, with the average claim for an SME business being over £57,000.