{"id":954,"date":"2024-07-18T14:16:41","date_gmt":"2024-07-18T14:16:41","guid":{"rendered":"https:\/\/leyton.majjane.agency\/ie\/insights\/articles\/can-software-developers-claim-rd-tax-credits\/"},"modified":"2026-08-20T12:49:55","modified_gmt":"2026-08-20T10:49:55","slug":"can-software-developers-claim-rd-tax-credits","status":"publish","type":"article","link":"https:\/\/leyton.com\/ie\/insights\/articles\/can-software-developers-claim-rd-tax-credits\/","title":{"rendered":"Can software developers claim R&amp;D Tax Credits?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">All companies should consider claiming <a href=\"https:\/\/leyton.com\/ie\/rd-tax-credits-i-have-never-claimed\/\">R&amp;D Tax Credits<\/a> if their research and development has used a systematic approach to resolve a scientific or technological uncertainty.<br><br>What many businesses don\u2019t realise is that, in certain circumstances, this definition of R&amp;D can be applied to innovative software development projects. It\u2019s an important industry for Ireland\u2019s economic growth, with market revenue from software development <a href=\"https:\/\/www.statista.com\/outlook\/tmo\/software\/ireland\">projected<\/a> to reach $1.49 billion (\u20ac1.36 billion) this year. The expansion of artificial intelligence and the demand for ever-more-secure cybersecurity are helping to drive innovation faster than ever before.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, there is a lot of confusion around what qualifies. While much of the work is routine, software development can also deliver exciting technological breakthroughs. When advances do occur, businesses should look to claim valuable financial support, which is calculated at 25% of qualifying R&amp;D expenditure (rising to 30% for accounting periods starting on or after 1 January 2024).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this article,&nbsp;we highlight the software development activities that qualify for R&amp;D Tax Credits and answers questions to help businesses prepare for a successful claim.<\/p>\n\n\n\n<h2 id=\"h-what-software-development-activities-qualify-for-r-amp-d-tax-credits\" class=\"wp-block-heading\">What software development activities qualify for R&amp;D Tax Credits?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Qualifying advances tend to happen when there is an innovation in:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Algorithms: E.g., developing a new machine learning algorithm that significantly enhances the accuracy of predictive analytics in healthcare data.<\/li>\n\n\n\n<li>Techniques: E.g., developing a new image compression technique that maintains higher quality at lower file sizes.<\/li>\n\n\n\n<li>Constructs: E.g., implementing a new data structure that optimizes storage and retrieval operations for large-scale databases.<\/li>\n\n\n\n<li>Software architectures: E.g., developing a microservices architecture that allows for better scalability and maintenance of a complex e-commerce platform<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">To know if your work qualifies, you\u2019ll be able to demonstrate that you\u2019ve overcome an uncertainty, which might relate to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>functionality<\/li>\n\n\n\n<li>turning theoretical models\/algorithms into code<\/li>\n\n\n\n<li>scalability<\/li>\n\n\n\n<li>platform compatibility<\/li>\n\n\n\n<li>application\/system integration.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Any qualifying activity must be approached systematically, meaning you can&#8217;t accidentally stumble across a technological advancement \u2013 you must have followed an iterative process towards a clear goal. This is likely to be straightforward if you&#8217;ve followed a standard software development life cycle, as these tend to follow structured processes that will include trial and error.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You also must be able to pinpoint the exact phases (e.g.,&nbsp;design,&nbsp;build,&nbsp;or test) where innovation and technological advancement has been achieved. For example,&nbsp;if a company develops a new algorithm during the design phase to solve a technical challenge,&nbsp;that specific activity would likely qualify.&nbsp;However,&nbsp;routine coding tasks in the build phase might not qualify unless they involve overcoming significant technical hurdles.<\/p>\n\n\n\n<h2 id=\"h-can-agile-software-development-projects-count-as-r-amp-d\" class=\"wp-block-heading\">Can agile software development projects count as R&amp;D?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As long as your innovation resolves a scientific or technological uncertainty, it&#8217;s perfectly acceptable to have followed agile development methodologies such as Scrum. While the methodologies are more flexible, they&#8217;re still goal-oriented, and they also allow for iterative progress, which fulfils the necessary criteria of taking a systematic approach.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is important, however, to make sure that any work conducted as part of an agile project is clearly documented as there are likely to be both qualifying and non-qualifying activities undertaken during sprints. In these circumstances, costs, such as staffing costs, must be apportioned between qualifying and non-qualifying tasks.<\/p>\n\n\n\n<h2 id=\"h-what-software-development-activities-do-not-qualify-for-r-amp-d-tax-credits\" class=\"wp-block-heading\">What software development activities do not qualify for R&amp;D Tax Credits?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Generally, any&nbsp;activities that are routine,&nbsp;market-driven,&nbsp;or don&#8217;t address technical uncertainties are not eligible for R&amp;D Tax Credits.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This means that a lot of software development activities wouldn\u2019t be eligible, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>maintenance<\/li>\n\n\n\n<li>routine tasks like copying, upgrading, or adapting an existing product, process or service<\/li>\n\n\n\n<li>using existing methodologies in standard dev environments<\/li>\n\n\n\n<li>using existing methodologies in standard dev environments<\/li>\n\n\n\n<li>relying on normal features and functions of off-the-shelf tools<\/li>\n\n\n\n<li>user acceptance testing that focuses on accuracy and completeness<\/li>\n\n\n\n<li>dev work aimed at packaging a product for market<\/li>\n\n\n\n<li>adding features where there is no scientific or technological advance.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"h-how-can-my-software-development-company-prepare-for-claiming-r-amp-d-tax-credits\" class=\"wp-block-heading\">How can my software development company prepare for claiming R&amp;D Tax Credits?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The best way to prepare for any R&amp;D claim, software development project or otherwise, is to have clear records of the work that you\u2019ve undertaken, with an activity breakdown including any associated expenditure. &nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is probably simpler for larger projects, as they tend to have formal governance supporting them, making it easier to track qualifying expenditures, but it\u2019s important to get into the habit of documenting work that occurs within smaller projects and agile projects.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This makes identifying qualifying costs much easier and allows you to evidence your claims with confidence.<\/p>\n\n\n\n<h2 id=\"h-how-can-leyton-help\" class=\"wp-block-heading\">How can Leyton help?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The rapid pace of innovation and change in software development can make it hard for businesses to know if their work qualifies as a genuine technological advance. That\u2019s where we can help.<br><br>We have a team of software sector specialists who are up to date with the latest industry advancements. Their expertise means they can identify qualifying expenditures, allowing you to maximise your <a href=\"https:\/\/leyton.com\/ie\/rd-tax-credits-i-have-never-claimed\/\">R&amp;D Tax Credits<\/a> claim.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/leyton.com\/ie\/contact-us\/\">Speak to a member of our team<\/a>&nbsp;to find out more.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you enjoyed this article, you might also like:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/leyton.com\/ie\/insights\/articles\/qualifying-rd-expenditure-what-can-you-claim\/\">Qualifying R&amp;D expenditure: What can you claim?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>All companies should consider claiming R&amp;D Tax Credits if their research and development has used a systematic approach to resolve a scientific or technological uncertainty. What many businesses don\u2019t realise is that, in certain circumstances, this definition of R&amp;D can be applied to innovative software development projects. It\u2019s an important industry for Ireland\u2019s economic growth, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1020,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[99],"tags":[],"expertise":[171],"class_list":["post-954","article","type-article","status-publish","format-standard","has-post-thumbnail","hentry","category-rd-tax-credits-en","expertise-rd-tax-credits"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.1 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Can software developers claim R&amp;D Tax Credits? - Leyton Ireland<\/title>\n<meta name=\"description\" content=\"We highlight which software development activities qualify for R&amp;D Tax Credits and answer FAQs to help businesses prepare for a successful claim.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/leyton.com\/ie\/insights\/articles\/can-software-developers-claim-rd-tax-credits\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Can software developers claim R&amp;D Tax Credits?\" \/>\n<meta property=\"og:description\" content=\"We highlight which software development activities qualify for R&amp;D Tax Credits and answer FAQs to help businesses prepare for a successful claim.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/leyton.com\/ie\/insights\/articles\/can-software-developers-claim-rd-tax-credits\/\" \/>\n<meta property=\"og:site_name\" content=\"Leyton Ireland\" \/>\n<meta property=\"article:modified_time\" content=\"2026-08-20T10:49:55+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/leyton.com\/wp-content\/blogs.dir\/15\/files\/2024\/07\/GettyImages-940143998_711x455px.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"711\" \/>\n\t<meta property=\"og:image:height\" content=\"455\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/leyton.com\\\/ie\\\/insights\\\/articles\\\/can-software-developers-claim-rd-tax-credits\\\/\",\"url\":\"https:\\\/\\\/leyton.com\\\/ie\\\/insights\\\/articles\\\/can-software-developers-claim-rd-tax-credits\\\/\",\"name\":\"Can software developers claim R&amp;D Tax Credits? 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