R&D Tax Credit | Software & IT
In the realm of R&D tax credits, Software and IT enterprises are constantly striving to enhance their products. At Braithwaite, we are well-versed in the intricacies of Research and Development Tax Credits for the Software & IT sector.
Software & IT
For businesses in the Software & IT domain, pursuing R&D tax credits in Ireland becomes paramount to fueling business growth and satisfying the ever-demanding customer base. In this fiercely competitive sector, innovation and experimentation are essential to evade stagnation.
These tax incentives for innovation serve as a financial lifeline, affording Software & IT enterprises the opportunity to bolster their research efforts and craft groundbreaking solutions. This strategic advantage not only keeps companies at the forefront of the industry but also nurtures growth.
Key questions on R&D in Software & IT
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- What questions should my company ask when qualifying a claim?
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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.
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- Is the company using open-source software (and therefore not eligible)?
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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.
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- Is the company using existing software languages (and therefore not eligible)?
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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.
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- Do internal processes qualify?
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Many large companies do internal software development for internal processes. This could be eligible but is usually overlooked.
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- I’ve done simple website development recently and was told I don’t qualify for an R&D claim?
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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.
What Braithwaite Offers
Our team possesses expertise in every aspect of R&D tax credit consulting. We know precisely what to incorporate into your claims, the methodologies to employ throughout the claiming process, and most importantly, the potential pitfalls to avoid. With our guidance, your Software & IT enterprise can confidently pursue robust, successful, and compliant R&D tax relief initiatives tailored specifically to your needs.
Discover the benefits of maximizing R&D tax credits, including IRS R&D tax credits, state-specific R&D tax credits, and industry-specific incentives such as technology tax credits, manufacturing tax credits, software development tax credits, engineering R&D tax credits, and pharmaceutical R&D tax credits. Leverage these incentives to propel your small business towards innovation and success.
Contact us today for further information: info@braithwaite.ie.
