Digital Agencies can Claim R&D Tax Relief
Updated: Nov 2, 2022
It is crazy to see just how few digital agencies are claiming R&D tax credits. Unfortunately, this is usually due to a misunderstanding of what it means to be eligible and even worse, they have been previously wrongly advised.
The truth is many digital agencies are carrying out R&D and should be claiming. If you have digital agency clients and you’re unsure if they qualify, read on for some typical projects and case studies.
DIGITAL AGENCY PROJECTS
Here are some examples of digital agency projects you often see qualifying for R&D Tax Relief:
– building customised apps for clients
– creating customised software
– further advancing functionality that isn’t widely available
– integrating CRMs with other marketing software or databases
– complicated integration projects with CRMs
– building customised auditing tools for SEO
– developing machine learning and AI to meet a client needs
– creating experiences from AR or VR
– integrating VR, AR or AI with something, leading to a new product, service or process
– building customised reporting systems for internal use
– developing secure systems to gather data from several sources
– designing databases to deliver improvements
– developing data collection technologies for digital campaigns
– developing custom algorithms for data search and analysis
– application of business intelligence algorithms to improve functionality
CASE STUDIES Here are some client case studies, summarising the projects, qualifying activity and claim size: CASE STUDY: BUILD MOBILE APPLICATION
A Digital Agency created a new wellbeing app for people to use at home. App created to monitor the health and wellbeing of people within their homes, a lot of custom development work in-house. The project involved custom in-house mobile application development. Cost claimed were for software developers and support staff.
Claim size £16k cash refund from HMRC.
CASE STUDY: BUILD WEB APPLICATION
A Digital Agency created a new website with a built in location search functionality for a specified service – as well as creating quotes. The project involved custom in-house web application development. Cost claimed were for software developers, software licences, and support staff.
Claim size £23k cash refund from HMRC. CASE STUDY: BUILD SECURE PORTAL FOR DATA
A Digital Agency developed a secure document portal for legal documents to be stored. The project involved custom in-house development of a secure portal for data. Cost claimed were for software developers and support staff.
Claim size 19k cash refund from HMRC.
For DTX’ers using Radish Tax from the Diagnostax ecosystem, you can get your hands on a digital agencies document to use with your clients, just drop us an email at email@example.com and we’ll make sure you get this. If you have a client in you’d like to discuss, don’t hesitate to reach out.