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R&D tax credits for technology companies

This sector includes many technical and software developers. There is often a strong case for an R&D credit for software development. Even when a company has developed software before they can demonstrate innovation in bringing that technology to address different challenges with different clients. Projects may require bespoke methodology and unique architecture solutions which could be eligible as R&D expenditure.




million in claim value


Average claim value

Source HMRC R&D tax credits statistics 2023 The statistics published by HMRC for 2021-22 are provisional and have been uplifted to include estimates for claims not yet received.

What qualifies as R&D in the information and communication sector?

We find qualifying R&D expenditure in developing new operating systems or languages, creating new encryption or security techniques that don’t follow established methodologies, the development and testing of systems, devices or processes, and the integration of legacy and new systems. Many companies are specialising in big data analytics where methods for analysing vast amounts of data haven’t existed before and need to be created in a new non-routine way.

The telecoms industry is constantly innovating with the design of mobile and interactive services and the evolution of new generation networks.

This sector includes the following types of business.

  • Telecommunications
  • Computer programming, consultancy and related activities
  • Information service activities including Data processing, hosting and related activities; web portals
  • Publishing activities
  • Motion picture, video and television programme production, sound recording and music publishing activities
  • Programming and broadcasting activities

Yes, information and communications companies can claim under either scheme depending on their size and other deciding factors. Of the R&D tax relief claims made in 2021-22 so far, 88% of them were under the SME scheme equating to 74% of the value claimed.

You can claim against certain costs on the project including

  • Employee costs including salaries, wages, Class 1 National Insurance contributions, pension fund contributions
  • Subcontractor costs

Yes, information and communication companies that have already claimed R&D tax credits might find that they could claim even more by applying for corporate tax relief through the Patent Box scheme. In 2021-22, so far, only 55 companies elected into Patent Box, claiming £123 million in benefit.

Information and communication sector business


Artificial intelligence and robotics​

Technology, information and communication case studies

Computer Controlled Solutions Ltd

Industry: Information Technology
  • Source Advisors helped make a claim against expenditure on an R&D project which failed initially
  • Claims made by CCS under the R&D tax credit scheme have increased by 500% over four years
Read full CSS case study
R&D case study Computer Controlled Solutions logo

Tracware Ltd

Industry: Software
  • Source Advisors helped claim R&D tax credits for multiple projects some of which spanned several years
  • This allowed the client to claim credit on approximately 25% of their investment which they reinvested in innovation to stay ahead of their competitors
Read full Tracware Ltd case study

Traffic Environment Systems Ltd (TES)

Industry: Mobile CCTV technology
  • Source Advisors offered the client a holistic view of the incentives and tax reliefs used to promote innovation over a period of seven years
  • A successful IPO patent grant application allowed the client to benefit from Patent Box in addition to the R&D tax credit scheme
Read full Traffic Environment Systems Ltd case study
R&D case study TES logo

Veriserv Ltd

Industry: Monitoring solutions

  • Although initially unsure that they would qualify, Source Advisors identified that a significant amount of eligible R&D
  • As a Source Advisors client since 2010, Veriserv has successfully recovered more than £100k to the business

Read full Veriserv Ltd case study

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