Software, as with all information technology, is a dynamic and vital sector driving innovation in today’s digital age. With constant evolution in technology, the demand for advanced software solutions is ever-increasing and is renowned for its ability to create enhanced novel applications, platforms, and systems that cater to a multitude of industries and end users. Due to the innovative nature of the sector, software development is an area of intensive R&D, and many businesses can unlock vital funding through R&D tax relief.
There are a number of well-established branches within the software industry that continue to innovate and are rich areas for qualifying R&D activity such as artificial intelligence, cloud or mobile computing, as well as augmented reality and internet of things technology.
Yet, companies that seek to resolve challenging software problems can be eligible for tax relief, provided the software development goes beyond routine programming and aims to achieve technological advancements. For example, fundamentally enhancing existing systems or the creation and implementation of novel algorithms which increases the overall capability in an area of software.
Combining standard technologies, such as integrating platforms to increase performance, can also be R&D if a competent professional in the field cannot readily deduce how the separate components should be combined to have the intended function.
