R&D Software Development
Many companies that are developing software either in house or using external contractors, will qualify as undertaking R&D. We have clients ranging from small companies spending on average £30,000 a year on R&D up to companies spending many hundreds of thousands of pounds per year.
Licenced software development (exmple of a small claim)
We are a small company developing membership software for licence to charities and other membership organisations.
Our R&D activities have included developing and coding a bespoke:
- Membership subscription management module;
- Direct debit control – BACS processing/banking management interface;
- Donation entry and reporting (for charities) tool;
- Email management system – individual and mass emails;
- Method for linking a telephone call log system to own unique CRM.
There are technological uncertainties in the design and development of each new module and in ensuring the interface between new modules and the existing system are effective. We also link to external application interfaces such as banking systems so that give rise to some additional technical challenges.
What was the financial benefit?
- Company annual turnover – £300,000
- Number of employees – 4
- R&D expenditure in the year – £23,000
- Corporation tax saved – £4,500
- Average annual claim value – £5,000
What would the financial benefit be for a larger development project?
- Company annual turnover – £3,000,000
- Number of employees – 25 plus external contractors
- R&D expenditure in the year – £400,000
- Corporation tax saved/total benefit – £100,000
Are you ready to find out if you qualify or how much your R&D claims could be worth?