Each industry faces its own challenges when filing an R&D claim. There are some items that are easier to identify when claiming and other items are in the “grey area”. Here are some questions companies should be asking when filing a Software claim.
Is the company using opensource software (and therefore not eligible)?
- The company can still be eligible if they extended it or modified it to overcome limitations/deficiencies. We find that 80% of claims nowadays involves some opensource but are still eligible.
Is the company using existing software languages (and therefore not eligible)?
- Almost everybody uses existing software languages and they are still eligible. It is not what language they use but rather what creative uses they find with/for it. 99% of claims nowadays involve some existing software languages but they are still eligible.
Is the company using existing tools and or libraries (and therefore not eligible)?
- If the company has modified or extended these tools and or libraries they could be eligible.
Do internal processes qualify?
- Many large companies do internal software development for internal processes. This could be eligible but is usually overlooked.
I’ve done simple website development recently and was told I don’t qualify for an R&D claim?
- Simple website development tends to be harder to qualify and usually, the costs/fees are low. However, developing re-usable tools/techniques for website development can be lucrative.
General Software-based R&D activities that may be eligible:
- Development of a new operating systems
- Developing new generic methods of capturing, transmitting, storing, retrieving or manipulating, searching or securing data
- Development of software to run new types of computer hardware, particularly where there are conflicts between hardware and software
- Development of new programming languages or software development tools or the development of significant extensions to an existing language
- Development of new software framework and/or architecture
For further information on claiming an R&D software claim, contact the experts at Braithwaite UK today!