Digital Agency and Web Development companies are claiming R&D Tax Relief. Are you missing out?
The outbreak of the Covid-19 pandemic has broken traditional modes of communication. The transition to remote working prompted by social distancing measures has created the need for the virtual marketing of brands and a major rethink on customer interactions. It’s little surprise that we are seeing an increase in software, digital agency and web development clients claiming R&D tax relief.
R&D tax relief gives the opportunity to claim either a reduction in corporation tax of up to 24.7p for every £1 of R&D expenditure or, for loss making companies, a payable tax credit of up to 33.35p of every £1 spent on qualifying R&D activity.
Companies within this sector are transforming marketing so that consumers are targeted in increasingly innovative ways. Traditional media consumption has been replaced by a hunger for compelling experiences, technical innovation and authentic relationships.
The increasing capabilities of high-tech devices and mobile technologies provide enormous potential for engaging users in new ways. In such a fast-paced industry where the next generation of interactive technology is being developed today, tax relief opportunities are invaluable in providing useful cash flows to support continuous development.
Typical qualifying activities within this sector include but are not limited to:
- The development of digital brand measurement platforms which use sophisticated analytics to measure impact through engagement, awareness and interaction.
- Creation of customised middleware
- The use of virtual reality and augmented reality experiences
- Developing algorithms that aid data analysis.
- Improvement of search engine optimisation tools.
- Developing technology for increased personalisation in marketing.
- Developing internal tools around audience analysis.
- Developing software that enables data to be automatically extracted from several sites and analysed using intelligent algorithms.
The message is clear. If a digital marketing business is investing resources on software development, there may be an opportunity to claim R&D tax relief.
If you would like us to undertake a complimentary review, please contact us at hello@yes.tax
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