R&D Tax Relief in the Travel Sector
Research and development (R&D) tax relief rewards companies for development work undertaken in the ordinary course of many travel businesses. It is an unmissable opportunity to claim either a reduction in corporation tax of up to 24.5p in the pound of or, for loss making companies, a payable tax credit of up to 33.35p of any pound spent on qualifying R&D activities.
The digital revolution has impacted almost everything in the world as we know it. For tour operators, this has been especially significant. What may seem as typical day-to-day challenges to travel companies may attract substantial tax incentives culminating in many thousands of pounds being available to many companies in this sector.
The development work does not have to be blue sky innovation, however, it is necessary for the company to demonstrate some kind of technical uncertainty in the work being undertaken.
Typical qualifying activities within this sector include but are not limited to;
- Bringing large cumbersome, legacy systems up to date where there is little documentation.
- Buying off the shelf technology and adding a layer of bespoke functionality.
- Integrating multiple disparate systems to operate seamlessly and efficiently.
- Developing a platform that enables data to be automatically extracted from several sites and analysed using intelligent algorithms.
- Synchronising data from mobiles to central systems and ability to cache data where connectivity is not available.
- Development of dynamic pricing functions which link price to demand.
- Integrating legacy systems with modern technologies through the development of complex algorithms.
- Development of large, complex, multilayer databases which may also include the migration of legacy data.
- Integrating multiple disparate systems to operate seamlessly and efficiently.
- Software development activities undertaken to to comply with evolving Regulations and protocols i.e. ATOL Certificates, GDPR, GDS and NDC protocols.
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