Technology & Software
Momentum Group is one of the UK & Ireland’s leading R&D Tax Credits specialists providing a complete service in securing a maximised benefit on your behalf.
What is R&D for IT & Software?
What IT & Software projects qualify?
SMEs can benefit from an enhanced rate of R&D Tax Credits compared to larger business. For a company to be regarded as an SME and qualify for this initiative it must be a UK limited company or PLC, employing fewer than 500 people, have an annual turnover of less than €100 million or a balance sheet not exceeding €86 million. Many of the costs could actually be embedded in your normal operating behaviour and go unaccounted for.
Innovative data management processes and storage structures, including tools that appreciably improve upon database software and operating systems or architecture styles
Novel software development integrated with new computer hardware types within, for example, robotics or Internet of Things interoperability
Research or progressive work in the field of Artificial Intelligence (AI), machine learning and deep data analytics
Appreciably extending the functionalities of existing applications or systems, including where new technologies interface with legacy platforms
Building underlying technologies expanding the utilisation and application of virtual reality (VR) and augmented reality (AR)
Cutting edge innovation in the fields of quantum computing and decentralised technologies like blockchain, including where applied in building future-ready cyber security or financial systems
Developing processes that meet increasing regulatory requirements
Attempting to integrate various platforms which are not standard or routine
Product or process testing and prototyping
Benefits of R&D for IT & Software
All costs incurred on any research and development activities could qualify for a claim in the relevant tax year. You may also claim for expenditure such as materials and consumables, travel expenses, transport and utility costs may also be claimable.
A hidden and immediate source of cash for many small and mid-size companies.
Real Tax Savings
Creates a significant reduction to current and future years tax liabilities.
Create and protect jobs whilst enhancing competitiveness within your sector.
Tax credits for qualifying activies may carry forward up to 20 years.
If you are new to R&D Tax Credits, or have made claims in the past, you may have various questions you’d like answered, so we’ve put together a list of FAQs to help you along.
The UK Government introduced R&D Tax Credits in 2000 to stimulate business innovation. R&D Tax Credits relief allows companies that carry out development of innovative products, processes and services to claim an extra corporation tax deduction for doing so.
Many companies don’t realise how much of what they do within their day-to-day activities actually qualifies as R&D. We help our clients to identify all qualifying activities that can be claimed for. We also help our clients to evolve by developing tailored R&D strategies that fulfil business objectives, ensuring future R&D activities and all associated expenditure is fully optimised.
Our proven track record, methodologies and robust processes have been developed to enable our expert team to work with you every step of the way and to undertake approximately 90% of the work so you can concentrate on developing your business. This includes writing your full comprehensive HMRC compliant technical report.
You have two years from the end of your accounting period to submit a research and development (R&D) tax credit claim for any qualifying activities and associated expenditure during this period. R&D Tax Credits are a corporation tax relief and the deadline for amending your corporation tax return is typically two years after the end of your accounting period.
SMEs can claim up to 33% of R&D expenditure incurred, and large companies up to 10%. For a rough estimate, you can use our handy calculator [link]
However, it’s very likely that you are potentially undertaking much more in the way of qualifying activities for this purpose than you think; so contact us today to arrange a free and no-obligation consultation.
If your company has incurred expenditure (including time & salaries) developing new products, processes or services, or if you’ve made enhancements to existing products, processes or services, you will probably be eligible for R&D tax benefit. By using our proven process to achieve a successful outcome, Momentum will prepare your claim ready for submission to HMRC.
In the unlikely event that HMRC raise a question about an R&D Tax Credits claim, Momentum has a fully qualified team, including ex-HMRC personnel, internal compliance officers and professional advisers, to respond to such queries. Our methodologies and reports meet the legislative guidelines, and with a 100% success rate, you can be assured that you’re in safe hands.
Unlike many others, Momentum doesn’t view your R&D as a mere tax-mitigation exercise. We know that the R&D Tax Credits initiative offers businesses an opportunity to grow and to realise their potential. And with 1000+ claims with over £130m in claims under our belt, we make a real difference where it’s needed most.
Our long-established business advancement team stands behind every application we prepare, working with our partners and HMRC before, during and after a claim.
No! Our business model is simple, we only raise an invoice when you receive your benefit. Our professional services fees are a percentage of the overall benefit we secure for you, so you’ll always be better off with no financial risk of upfront fees etc. and ensuring that you will not be left out of pocket!