R&D Tax Credits – Client Success Story

Industry Sector: Software

Engaging Innovation Tax to manage their R&D Tax Credit claim enabled our client to remain focussed on their business.

Client Profile: £470k turnover & 6 employees

Background: Our client was aware of R&D Tax Relief and knew they qualified but, due to a perceived lack of internal resource and time constraints, had never previously made a claim. Having taken little more than half a day of the clients time, the team at Innovation Tax worked diligently to submit a successful claim on their behalf. Our established and proven claim methodology ensured that the client could focus on their day-to-day activities, while we worked behind the scenes to assess, compile and submit a robust R&D claim.

R&D Tax Credit received:  £67,000
Client Feedback:

We’d been approached on several occasions in recent years by other service providers regarding R&D Tax Credits, but none were able to reassure us as to why we might qualify or convince us that the process itself would not impact on our primary focus to move our business forward… until we met with Innovation Tax. From the very beginning, they conducted their work professionally and efficiently and with total transparency, securing us an unexpected financial boost with minimal effort on our part. We look forward to working with them again later this year and would certainly recommend their services to other companies like ours.”


The Information & Communication sector accounts for around a quarter of all R&D Tax credit claims
Software technology is advancing at an ever-increasing rate as the need for people, businesses and – ultimately – data to be connected to each other becomes more imperative, a concept which is unlikely to change anytime soon. Whilst most new products have ready-to-use interfaces to connect with other devices, others require additional development within a test environment to programme interoperability and those intended to interface with the most advanced technologies – such as AI, robotics and augmented reality – may have to be updated or redeveloped completely.
What types of Software activities qualify for R&D tax credits?
Software applications touch most businesses, either directly or indirectly, in the pursuit of providing the product or service which forms the basis of their trade; specific examples of where software R&D would be considered to have occurred might include;
  • Data processing and storage – how systems search for and interpret data
  • Artificial intelligence (AI) – enabling computers to make decisions based upon outcome probability in complex scenarios
  • Video/online gaming – where software development enhances user experience
  • Cloud computing – covers a wide range of compliance, from building the cloud software from scratch to allowing disparate packages to work together
  • Developing a new malware detection software
  • Developing a natural language processing technology to understand, interpret and manipulate human language
  • Integration, developing or improving legacy systems
  • Integration of software applications and tools to advance system capability
  • Development of new software to assist with operational automation and key tasks
  • Developing new or improved data architectures that cannot be achieved with readily deducible solutions
  • Extending software frameworks beyond their original design


Innovation Tax prides itself on the knowledge and experience of a team consisting of R&D claim technicians, sector specialists and tax professionals who can expertly help our clients to identify all qualifying activities and eligible costs and submit a robust, fully maximised claim, that will stand up to HMRC scrutiny.

Start the conversation with a complimentary, no-obligation discussion.

Innovation Tax specialise in helping companies access vital funding and tax incentives to enable their businesses to grow, increase profitability, reduce risk and enable further investment in R&D and capital investments.

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