We have partnered a software company who work on complex solutions for their clients by using their expertise to provide unique insights into problems.
After working with them for some time we saw the potential for a large R&D tax claim in one of their projects for an important client. It dealt with taking static images and converting them into usable video. This was fraught with technical difficulties.
Making video good enough for the likes of YouTube from still images isn’t the usual way of operating. The software company had to look for a solution that measured to the millisecond if the video and still images were to be stitched together seamlessly.
The client looked at off-the-shelf solutions and quickly realised that these would not perform in the manner required. They then researched the way they would need to build the software to enable this. It threw up many challenges to convert the images into usable video. The timing was all-important.
When we heard about this project we were naturally excited to learn about what happened. Once we understood the project we could advise the software company that they had an R&D tax claim present. We talked to them about how we could help submit this claim.
Software is an area of much debate when it comes to R&D tax credits. It is an area where many think an R&D tax claim isn’t possible. It isn’t the end use of the software that is the subject of an R&D tax claim, but the way in which the developer builds a solution. In the case of the software company, they had to design new architecture to solve the problems of their client. This was perfect for an R&D tax claim.
The software company added to the overall knowledge of their industry with the research they carried out.
With fast-moving industries such as software, businesses have to move forward in order not to be overtaken. The software company reinvested the money gained from the R&D tax claim into future projects on behalf of their customers.
It is by understanding their business that we were able to help our client. Submitting a successful R&D tax claim is all about completing the two requirements the HMRC have. The first relates to the financials, the second to an explanation of what actually happened. We helped the software company by gathering technical data and putting this into a format that the tax man would understand.
Having all the relevant information in front of them means the HMRC can assess and make a quick decision. If submitted correctly, then an R&D tax claim for a software company can be back in the business in a matter of only a few weeks.
We worked with the software company to ensure we could send all the information the tax man needed. They were delighted to see their claim confirmed and the cash back in their business so quickly. This is one of the advantages of working with our expert team.
We are here to support the more complex R&D tax claims to ensure our clients get the most from the system.