Virtual development, real cashback opportunity!
Don’t let your digital agency and web developer clients miss out on their R&D Tax Relief Claims!
Yes! Digital agencies and web developers are potentially missing out on valuable Research and Development (R&D) tax credits. Activities which seem like typical day-to-day challenges to digital agencies and website developers may attract substantial tax incentives, culminating in many thousands of pounds being available to companies in this sector.
R&D tax relief rewards companies for development work undertaken in the ordinary course of many digital marketing companies. The scheme is an unmissable opportunity to claim either a reduction in corporation tax of up to 24.7p in the pound or, for loss making companies, a payable tax credit of up to 33.35p of any pound spent on qualifying R&D activity.
Companies within this sector are transforming marketing so that it better reflects the ever-changing digital world. Traditional media consumption has been replaced by a hunger for compelling experiences, technical innovation and authentic relationships.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 provides enormous potential for engaging users in innovative ways using state-of-the-art interfaces for enhanced interaction experience. 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 these ever-evolving technologies.
The development activities are not so much about new features and functions but the development of the processes behind these features and functions. If a digital agency is undertaking tasks where there is an element of technological uncertainty, they may qualify for this generous relief.
Typical qualifying activities within this sector include but are not limited to;
- Marketing campaigns that seamlessly integrate across multiple platforms
- The development of a digital brand measurement platform which uses sophisticated analytics built around complex algorithms to measure impact through engagement, awareness and interaction.
- Creation of customised middleware
- The use of virtual reality and augmented reality experiences.
- Development of apps that help clients market their products.
- Improvement of internal systems for reporting marketing impact.
- 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.
- Integrating databases or creating custom algorithms.
- Developing software that enables data to be automatically extracted from several sites and analysed using intelligent algorithms.
- 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.
The message is clear. If a digital marketing business is investing resources on software development, there may be a sizeable refund to claim from HMRC. Whether you are making a claim or not, if you would like a complimentary health check to ensure that you are maximising this opportunity, please email hello@yes.tax.
Here is what one of our clients said...
Our accountants, put us in touch with YesTax the week before our year end. After a short conversation over the phone, YesTax determined that we could make an R&D tax relief claim for the last two years. As our year end was fast approaching, we had a little over a week to submit the claim to HMRC for the previous two years. We were delighted that a week later we had made an R&D tax claim which would generate us £127,253 in cash savings.
We were aware of the scheme and had previously discussed the mechanics with other third parties, but our accountant and YesTax made the whole process of claiming very simple.
Since our formation, our company has grown from the shared belief of our directors that marketing campaigns could be far more powerful if they were seamlessly integrated across multiple platforms, more strategically-driven and more intelligently conceived.
It isn’t just about bringing live streaming, experiences and technological expertise under one roof. It also enables the company to put a new philosophy into practice – one which promotes creative thinking about how to achieve a brand’s overarching campaign objectives and then deploys multiple components in a strategic, intelligent way that takes the brand to another level.
What’s fuelling on-demand marketing is the continued, symbiotic evolution of technology and consumer expectations. There is a demand to create positive media experiences customers will share. It’s also apparent that each company as a whole must mobilise to deliver high-quality experiences across sales, service, product use, and marketing. As interactions multiply, we knew that we needed to use all emerging marketing tools for gathering the right data across the consumer decision journey.
We are investing heavily in our products and processes and we are already planning to use this generous tax relief system to fund further development.