What Qualifies For R&D Tax Credits? – 3 Niche Areas
When looking at what qualifies for research and development (R&D) tax credits, HMRC is looking to see evidence of advancement in overall knowledge or capability for the whole field of computer science.
Software companies that overcome scientific or technological challenges must do so using a competent professional in the sector, with knowledge and results being presented in a technical narrative detailing what problem was faced, and how it was overcome.
Equally important is the improvement of an existing product or system. This doesn’t mean simply adapting software to your business, although HMRC would consider improvements that lead to better integration of systems with web programs, hardware, new devices and so on. As imagined, this form of credit can be very different from that of Mortgages or Income Tax
This article by RDT Active seeks to provide some clarity on the matter, passing information and providing tips on R&D Tax Credits. For more information, or more articles like this, be sure to check out our website.
Artificial intelligence (AI)
Over the last decade, the number of companies using AI has grown significantly, and the trend only seems to be increasing with more and more products and services using the technology in order to enhance companies’ propositions.
The strict definition of AI is that of making computers resolve complex situations by using statistical techniques to calculate probabilities, thus allowing software to make decisions for us. It requires having access to all the data relevant to a particular task.
Natural Language Processing
Have you ever spoken to a call centre and thought the person you were speaking to came across as a little robotic? As though it was an automated agent taking you through a set list of qualifying questions before passing you onto a relevant person?
Natural language processes can also be used in legal services to review archived documents and find certain cases. It can be found in recruitment when vetting candidates or scheduling appointments. During political campaigns, the technology will be used to gauge sentiment on particular issues and respond with targeted automated messaging.
Financial industries rely on immense quantities of data, with decisions having to be taken in split seconds. This can be done fastest using AI.
Equally important is the ability to detect problems in company or industry data; being able to identify data breaches, for example, means AI is a highly valuable security tool.