Fintech and R&D Tax Relief

The past few years has seen the financial services sector exploding on the scene with incredible technological innovations. The scope and speed of the evolution in this sector has been astonishing and has given 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 are claiming r&d tax relief. Why?

Fintech includes financial education, retail banking, investment platforms, payment systems and cryptocurrencies

Do you have a qualifying R&D project? Check below.

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.


There is qualifying R&D activity often taking place in the Fintech industry. For example, how you comply with financial regulations, whether you are creating competing software, or creating technology that protects the assets of your customers, may all be subject to 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, a new process or materials, you qualify. Alternatively, you can simply be changing or modifying existing products, processes or services, these activities may qualify too.

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What qualifies?

Most Fintech projects involve some aspect of innovative research and development activity, the costs of which will likely be eligible for R&D tax credits. Although in many other sectors it is possible to show a tangible product as the output of your R&D activity, most fintech claims require a different approach when it comes to filing for research and development tax credit.

New software, innovative ways of storage, advances in ai and calculation engines, innovative CRM and more, can all count towards a R&D tax credit claim, whether they have been successful or not.

See whether your company projects qualify for R&D tax relief


R&D tax relief scheme is remarkably inclusive but HMRC has specific guidelines on what companies can claim the benefit. Find out whether your project qualifies by clicking on the eligibility quiz button below.

Innovative Software

– Have you created a software that increases the performance of other technology out there?
– Have you built a software that integrates third party systems?
– Have you developed new data analytics tools?
– Have you developed software that promotes cybersecurity measures?
– Have you developed software for a new digital wallet, payment processor or online trading platform?

Innovative Products

– 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 product that can read digital banking data?
– Have you developed a new money management tool?

System Improvements

– 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?

Why use Novel for your R&D tax relief claims?

A simple pricing model that reflects our values to help support more R&D claims being done correctly. We do not charge you to download the report. We do not charge you on the percentage of your benefit.  Our monthly subscription fee is set to ensure that even the smallest firms are given the opportunity to submit R&D claims.