How investment on internal software projects could produce real cashflow benefits

Ashby Moss-Robins, Executive, Corporate Tax

As technology grows around us, businesses are continuously striving to improve internal processes. More often than not, they are carrying out projects that are advancing technology as we know it by overcoming technological challenges. Such businesses could be eligible for R&D tax incentives and might be missing out on valuable tax benefits.

Can’t find the solution?

Every company has its own unique requirements when it comes to making the business run more efficiently. It isn’t uncommon to find that ‘off-the-shelf’ software solutions cannot offer the functionality, scalability or security that the company seeks, and therefore they take on their own software development project. The technology sector is one of the fastest moving sectors in the world and it is important to remember that you don’t have to be a technology business to be contributing to this movement.

Common examples of internal software projects include, but are not restricted to:

  • development of a new document or process management system, or improvements to the company’s existing system
  • new methods of collating, processing and analysing data which can be used to help drive your business forward
  • development of new encryption and security techniques that do not follow established methodologies
  • improvements to your service delivery and billing processes and how these systems are integrated.

Is it R&D?

A company’s project may involve developing software from scratch or the modification of existing software through appreciably improved technology to produce something new and novel that fits the business needs. Such advances are good indicators of qualifying R&D activities, provided technological uncertainties are also being overcome.

business people meeting

How we can help

If you think that your business is being innovative, we can help review your activities to ensure you access the valuable benefits R&D tax incentives to which your company is entitled.

More information can be found on our R&D page, including sector specific questionnaires to help you identify potential R&D projects. Contact our Innovation Taxes Team, or your usual Crowe contact, to find out how we can help your company.

Contact us

Stuart Weekes
Stuart Weekes
Partner, Corporate Tax
Thames Valley