Software R&D Tax Credits

The UK software industry has received over £15 billion in R&D funding through this scheme, with “Information and Communication” being the second-largest SME R&D tax credit applicant sector, with 12,165 claims in 2019 (23% of all UK claims) mostly for software development.

Regardless of the type of software development or engineering your company is engaged in, it may qualify for R&D Tax Relief. If your company is involved in resolving technological uncertainty in an innovative field, it’s likely you’re eligible for the 12,000+ companies that can benefit from this scheme.

However, software claims are more complex than manufacturing claims and defining software development R&D can be challenging. Our webpage summarizes HMRC rules and offers insights from our own software claims experience.


What counts as R&D for tax relief Purposes?

we suggest evaluating your project against the following three criteria to determine if it meets the requirements for R&D classification in the eyes of HMRC Is there technological uncertainty?

  • If you took a competent professional in your field and gave him the documentation for your project?  Would the answer to your problem be readily deducible? If not then you’ll likely have attempted to overcome some sort of scientific or technological uncertainty for your project to qualify.
  • Have you achieved an advancement? The goal of any R&D project should be to take any given technology beyond what’s available in the public domain. So if you’re
    1. Doing something that’s never been done before to your knowledge,
    2. Something that’s been done by other companies before in a way that was their own IP,
    3. Advancing an existing technology/approach beyond what it was natively capable of, then you could have done exactly that.
  • Does it demand competent professionals? A professional in the relevant field shouldn’t be able to solve uncertainties with ease. A competent professional is one who is anticipated to be familiar with the pertinent scientific and technological principles involved, be aware of the current level of knowledge, have acquired experience, and be acknowledged as having a successful track record.


Typical Qualifying R&D Activities within Software:

  • New software development
  • Duplicating existing technology in a new or improved way
  • Improving existing products
  • Enhancing software frameworks
  • New or updated software projects
  • Adding new features to operating systems, programming languages, or database software
  • Developing end-to-end SaaS systems
  • Integrating hardware and software platforms
  • Cutting-edge data collection, transmission, manipulation, and security
  • Internal CRM systems development
  • Data ETL capabilities
  • Migrating to new technology architectures


Our R&D Tax Credit Process

Our Expert team of knowledgeable sector specialists, software consultants, accountants, and former-HMRC tax inspectors can uncover R&D expenditure in software projects that other advisers miss.

  1. EXPLORE: Schedule a free appointment below, and we will determine your eligibility and your software firm’s total R&D tax position.
  2. CREATE: We will create a claim that minimises your potential exposure to HMRC inquiries, attempt to expedite your claim, and avoid delays in getting your benefit. The claim will undergo rigorous compliance checks by our in-house compliance team.
  3. OPTIMISE: We’ll find you additional sources of R&D funding and offer planning assistance for your R&D strategy, taking potential incentives and grants into consideration. Through the whole company lifecycle, we can help by taking a comprehensive approach to the needs for innovation assistance.
  4. REWARD: We’ll ensure you safely receive the maximum tax credit available to you, enhancing your future growth.


How We Help

Our team of sector specialists, software consultants, accountants, and former HMRC tax inspectors can help uncover R&D expenditure in software projects that other advisors may miss. Schedule a free appointment with us to determine your eligibility and total R&D tax position, and let us create a claim that minimizes your potential exposure to HMRC inquiries and maximizes your benefits.


Book A Meeting


What our clients have to say

It was a pleasure working with the guys at Bonham & Brook, especially considering that, with the wealth of knowledge backed up with the expertise of an ex HMRC officer, we had confidence going ahead with a claim for the first time. After successfully receiving a substantial refund, we would not hesitate doing another claim and, it goes without saying, Bonham & Brook will be our preferred partners going forward. Thank you, again.

Chris Strik

Managing Director

We worked with the team at Bonham & Brook on the R&D claim that we were unaware of. To our surprise they made the whole process seamless and we received our refund from HMRC. We will definitely be using B&B again for our R&D claim to help us grow our business.

Chetan Patel


At first I believed that R&D tax credits were a little too good to be true or that my company would not be applicable. Jenson, Hannad and the team's expertise and experience reassured and guided me through the process. I had to put in approx. 1 - 2 hours work and they did the rest of the application. The first time we worked together they were able to claim for the previous 2 years, so we received a bumper double rebate. This money has helped us grow the business by having the cash to grow the team and increase our marketing budget. My business has grown thanks to their work, so I am eternally grateful.

Ryan James

Managing & Creative Director

Contact Us

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