Blog: The importance of R&D in software development
Software development is built on developing new products and processes or improving existing ones. In other words: innovation. A branch of the IT industry, software development has a critical role in business affairs. From creating applications and operating systems that support businesses, to developing bespoke solutions, the industry is fundamental to all businesses irrespective of sector.
More so than any other industry, software development moves at an incredible pace with new advances being made every day. In an industry that’s fast evolving and continuously advancing, remaining competitive is fundamental, and R&D is the key.
Being the first to develop innovative new products or processes can help establish your company as a leader in your field. In turn, this can attract new customers, as well as the best talent which helps your company grow and fuels further progress. On a wider scale, technological innovations also have the power to bring about positive change worldwide.
And the icing on the cake? Innovation can also entitle you to R&D tax credits.
The value of R&D tax relief
The government R&D Tax Credit scheme is designed to reward UK businesses for investing in innovation. However, many software companies with the misconception that research and development is reserved for scientists in white coats, are missing out on vital funding.
Some projects which may qualify include: developing ‘state-of-the-art’ software for new applications; enhancing the functionality of existing ones; creating innovative new techniques to capture or protect data; analysis of new and competing technologies; product or software testing.
So what’s in it for your business? The tax credit scheme offers a benefit of up to 33p for every £1, which can add up to an average claim value of £54,000 for SMEs. This can be used to reinvest in your business allowing you to reach your full potential.
In short, R&D tax credits have the power to transform your business. To find out whether your R&D software development could qualify, and for help and advice on applying, speak to a member of our team.
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