Don't miss tax breaks

IT departments could cut their software development costs by up to 10% if they qualify for tax relief on research and development...

IT departments could cut their software development costs by up to 10% if they qualify for tax relief on research and development projects.

The Department of Trade & Industry highlighted the tax incentives on offer last week when it published a report about the amount of money firms in and outside the UK spend on research and development projects.

R&D spending as a percentage of sales for UK software and IT service companies rose from 5.8% in 7% in the past year, according to the report.

Mike Tubbs, a senior industrialist with the DTI Business, Finance and Investment Unit, said that if a business' software development efforts fulfiled the government definition for R&D, large companies could benefit from tax breaks of 125% and smaller firms could get up to 150%.

These tax credits translate into cost savings on R&D projects of about 7.5% and 10% for companies that take advantage of them.

To qualify for the tax credit an IT project must prove that it is novel, contains an element of risk and will produce significant benefits.

www.inlandrevenue.gov.uk

CW+

Features

Enjoy the benefits of CW+ membership, learn more and join.

Read more on IT legislation and regulation

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

SearchCIO

SearchSecurity

  • Passive Python Network Mapping

    In this excerpt from chapter two of Passive Python Network Mapping, author Chet Hosmer discusses securing your devices against ...

  • Protecting Patient Information

    In this excerpt from chapter two of Protecting Patient Information, author Paul Cerrato discusses the consequences of data ...

  • Mobile Security and Privacy

    In this excerpt from chapter 11 of Mobile Security and Privacy, authors Raymond Choo and Man Ho Au discuss privacy and anonymity ...

SearchNetworking

SearchDataCenter

SearchDataManagement

Close