Eligibility for the R&D Tax Credit scheme

What qualifies for the R&D Tax Credit scheme and some details to explain each of the criteria.

What qualifies as R&D?

What is regarded as eligible for Research and Development Tax Credits would surprise you. Find out your eligibility now.
Most companies will make improvements and tweaks to out-of-the-box software, or build their own from scratch, and this will qualify for R&D tax credits. There are many things that qualify for R&D Tax Credits, we have detailed a few key areas that apply below.
“One of the most overlooked pieces of innovation in most businesses is the CRM system – the customer management software”

Developing new code and/ or products often requires considerable time, money and risk. Basic decisions and development iterations related to overall product architecture, third-party integration, performance metrics, throughput, data structures and algorithms, development platform bugs and/or limitations are commonly seen work likely to be suitable for R&D Tax Credits.

Often, organisations are tasked with investigating issues and providing efficient solutions to them that often require bespoke solutions to individual problems. If you have spent time and resources developing a bespoke solution rather than a ready-made/ off-the shelf product, your work is likely to be suitable for R&D Tax Credits.

R&D comes in many forms and generally if your organisation has set about doing work to break ground in your industry or by developing new products, then there’s a good chance you may be eligible to claim for R&D Tax Credits. Work focused around exploring new processes and increasing capacity/ innovation in your field often qualifies.

Once you have developed a solution or spent time and resources modifying existing products, most organisations set about rigorously testing the new solutions to ensure they are fit for purpose. If your organisation has done such work then you have clearly engaged in Research and Development and created solutions to advance your industry/field. Your work is likely to be suitable for R&D Tax Credits.

If your organisation spends time and resources, either in-house or with cosultants and outsourcing teams, looking into alternative options on products or services then you are engaging in Research & Development. Many businesses conduct A/B testing to be sure they roll out the most efficient product. This R&D work is likely suitable for R&D Tax Credits.

Following on from A/B Testing, organisations often try an innovate when developing solutions for their clients and attempt to better the present day solutions on the market. If your organisation or employed consultants/ outsourced teams attempt to innovate in their work by seeking quicker, better, more efficient, more effective solutions to problems then this R&D work is likely suitable for R&D Tax Credits.

Ready to apply?

If you’re ready to apply for your R&D tax refund, please call us on the freephone number below or use this contact form and one of our helpful team will be in touch to help.

0800 035 2510

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Case Study: Brainwave Drinks

Brainwave Drinks Ltd’s business is innovative, healthy functional drinks. They created, developed and launched in the UK the Brainwave range of drinks, which are unique – helping maintain brain health and cognitive performance. Similarly, their ProWater range of drinks – high protein, low calorie, great tasting and refreshing (not chalky). The protein is fully soluble – again unique in their markets.