R&D Tax Credits for Software Development - Lanham Drove Ltd
Description: Tax credits / relief for software development
software development (6702) r&d (473) tax relief (97) tax credits (69)
R&D Tax Relief for Software Development
“The tax relief benefit is surely marginal – what sort of Return On Investment can I expect ?” On a recent assignment for a large software company, for each £1,000 spent investigating and assessing development activities, £200,000 of eligible costs were identified. The value of the equivalent tax relief was £50,000, resulting in a bottom-line cash benefit of £15,000 – for each £1,000 spent ! For SMEs, the return is of course double that.
"Isn't the benefit only available to small companies ?" No. When the scheme was first introduced it was only available to SMEs, but it is now available to all companies."
R&D Tax Credits for Software Development - Lanham Drove Ltd