The software industry represents a fertile field in terms of R&D activities

If your Company is engaged in software development or engineering, it can potentially qualify for R&D tax relief. However, software claims are usually complex as identifying R&D in software development is delicate.

A Quick Preview of Our Claiming Process

At Bonham & Brook, we follow a comprehensive process to ensure that your projects meet the requirements and criteria set by the IRS for the R&D tax credit. Here’s what we evaluate:

  • Qualified purpose: Did your project aim to develop or improve a business component such as a product, process, or technique?
  • Uncertainties: Did you encounter challenges that made it uncertain how to achieve your project goals in terms of feasibility, method, or design?
  • Your project is fundamentally technological in nature: Did your project rely on principles of Data Structure, Software Engineering, Algorithms, Programming, or other hard sciences to resolve these challenges?
  • Process of Experimentation: Did you follow a systematic approach that involved experimentation and the evaluation of alternative solutions to reach your goals?

It’s worth noting that your project doesn’t have to be successful or fully completed to qualify for the R&D tax credit.

If you answered yes to any of these questions, we encourage you to reach out to us to discuss your eligibility. We’re here to help, even if you’re not sure whether your project qualifies.

Examples of qualifying Software activities

The following activities are examples of software projects that potentially qualify as R&D activities

  • Development of a new software product using new architectures
  • Development of new database management techniques
  • Software Development with cutting-edge technologies (such as artificial intelligence, voice recognition, and image processing)
  • Software development for hardware products
  • Development of new compilers, new memory management designs, or new operating systems

Examples of non-qualifying Software activities

The following activities are examples of software projects that usually fail to qualify as R&D work:

  • Maintenance of existing software applications/products
  • Software application configuration
  • Reverse engineering
  • Detecting flaws and bugs in software
  • Upgrading to newer versions of hardware or software
  • Installing vendor fix releases
  • Re-hosting or porting an application to a new hardware or software platform

How We Help

Our team of sector specialists, software consultants, accountants 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.


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