R&D Tax Relief
The past few years saw the finance service providers exploding on the scene with incredible technological innovations. The scope and speed of the evolution in this sector was astonishing and gave rise to what is now known as fintech. Yet, despite fintechs disruptive and innovative nature in the financial services sector, it does not even make the top 5 of the sectors that is claiming the R&D tax relief. Why?
Fintech includes financial education, retail banking, investment platforms, payment systems and even cryptocurrencies.
When it comes to fintech, R&D worthy activity is often undertaken on a daily basis. A sector that prides itself on security and data protection requires heavy investment in infrastructure to support it, such as transaction encryption, regulatory compliance software, authentication software, fraud detection software and the likes.
How you comply with financial regulations and the type of software you created to make you stand out from your competitors, and protect the assets of your customers could qualify for R&D tax credit.
What is R&D tax credit?
The UK Government’s Research and Development Tax Relief scheme is a way to encourage and reward companies that are investing in innovation.
What qualifies as innovation?
For tax purposes, R&D takes place when you are creating something that will advance the overall knowledge or capability in the field of science and technology. In simple terms, if you are solving industry problems, creating new software, process or materials or anything that could be considered Intellectual Property, you qualify.ROI
Most fintech projects involve some aspect of innovative R&D activity and how you deal with it may potentially save you money, instead of costing you money. Although in most other sectors it is possible to show a tangible piece of equipment as the output of your R&D activity, most fintech require a different approach when it comes to filing for an R&D tax credit claim.
New software, innovative ways of storage, advances in AI and calculation engines, innovative CRMs and more, can all count toward R&D tax credit claim no matter whether they have been successful or not.
- Have you created a software that increases the performance of other technology out there, such as speed of trades.
- Have you built a software that integrates third party systems.
- Have you developed new data analytics tools?
- Have you developed a software that forwards cybersecurity measures?
- Have you developed software for a new digital wallet, payment processor or online trading platform?
- Have you created a new banking system?
- Have you created a new digital currency?
- Have you created a new app in the financial sector, such as a budgeting app?
- Have you developed a physical product that can read digital banking data?
- Have you developed a new money management tool?
- Have you developed technology that enhances security?
- Have you developed new ways to encrypt data?
- Have you developed trading algorithms?
- Have you built an AI algorithm that automates certain tasks?
- Are you working on any proprietary technology that will improve functionality in the financial sector?
Want to find out whether you can claim 33% of your R&D costs back?
There is a reason it's called innovation.
Think your project qualifies but we did not mention it above? Most likely! That’s why it’s called innovation. Get in touch with us and let us see whether you qualify for an R&D tax credit.
r&d tax credit for sMEs with novel
Making Sure Your Business Gets the Funding it Deserves
At Novel, we balance between the attention to detail and number crunching of an accountant, with our child-like disposition to anything new, unusual and innovative. To embody this philosophy we even named our company Novel.
We are on a quest to spread awareness about the R&D tax scheme so SMEs all over the UK can get funding to pursue their research. We know that to some businesses finding out about the R&D tax credit scheme was the difference between going bankrupt and continuing their work and starting to make money. To others it was more psychological, it acted as the earliest sense of recognition for their work. If you are an SME and think that you may qualify for an R&D tax credit, we want to hear from you!