R&D Tax Credits For The Technology Sector
Get the sector experience you need to make a successful R&D tax relief claim
QLC helps technology companies accelerate their R&D claims with our streamlined portal and expert team.
Our technology experience
With years of expertise in technology R&D tax relief, QLC understands the complexities of your industry.
Whether you're developing innovative software, enhancing AI capabilities, or creating cutting-edge digital solutions, we’ve supported technology companies of all sizes in claiming millions through R&D tax credits.
Trust QLC to help your business unlock the benefits you deserve.
How much could you claim?
The average R&D tax claim for an SME
For your own quick estimate, you can use our easy-to-use R&D tax calculator:
£ 55 k
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What Our Clients Say About Us
"I am really impressed with the efficiency of your work, and the results you got for our company. A very friendly, committed and obviously hardworking team. You made the whole process very easy."
Will Tompkins (Director)
Vintage and Classic Cars
"QLC successfully claimed credits for the past 2 financial years, this year was even better. They managed the application and claimed the R&D credit prior to our annual tax bill, making the whole process quicker, easier and more efficient than last year."
Andrew Forbes (Director)
Architecture
"A massive thanks to all your team, obviously with the current situation, this money couldn’t have come at a better time."
Ian Cooke (Director)
Engineering
"From our experience we have always found QLC to be efficient and thorough in their tax appraisals, carefully guiding us through the often complex process. They have a very approachable team, all of which have been able to offer excellent advice when needed."
Ben Reed (Director)
Architecture
"They are proactive and efficient in performing their service and I have been impressed by their dynamism."
Chris Wright (Director)
Motorsport Engineering
"Your company did exactly what you said it would do. It took far less time than the other company that we had used in the past. We are extremely pleased with the outcome."
Adrian Smith (Company Sec)
Manufacturing Firm
"I am really impressed with the efficiency of your work, and the results you got for our company. A very friendly, committed and obviously hardworking team. You made the whole process very easy."
Will Tompkins (Director)
Vintage and Classic Cars
"QLC successfully claimed credits for the past 2 financial years, this year was even better. They managed the application and claimed the R&D credit prior to our annual tax bill, making the whole process quicker, easier and more efficient than last year."
Andrew Forbes (Director)
Architecture
"A massive thanks to all your team, obviously with the current situation, this money couldn’t have come at a better time."
Ian Cooke (Director)
Engineering
"From our experience we have always found QLC to be efficient and thorough in their tax appraisals, carefully guiding us through the often complex process. They have a very approachable team, all of which have been able to offer excellent advice when needed."
Ben Reed (Director)
Architecture
"They are proactive and efficient in performing their service and I have been impressed by their dynamism."
Chris Wright (Director)
Motorsport Engineering
"Your company did exactly what you said it would do. It took far less time than the other company that we had used in the past. We are extremely pleased with the outcome."
Adrian Smith (Company Sec)
Manufacturing Firm
Common R&D activities in the technology sector
Below is a comprehensive list of R&D activities in the technology sector that may be eligible for R&D tax relief in the UK.
Software development
Developing innovative software applications or platforms.
Creating custom APIs for seamless integration between systems.
Building Software-as-a-Service (SaaS) solutions for unique customer needs.
Enhancing application scalability, performance, or interoperability.
Developing new frameworks or algorithms to solve complex problems.
Artificial intelligence and machine learning
Designing AI models for predictive analytics, natural language processing, or image recognition.
Optimising machine learning algorithms for speed, accuracy, or scalability.
Creating tools for automated decision-making and data insights.
Innovating reinforcement learning systems for advanced applications.
Developing AI-powered customer service chatbots or virtual assistants.
Cybersecurity
Developing encryption methods to secure sensitive data.
Creating advanced fraud detection and prevention systems.
Building tools for real-time intrusion detection and response.
Enhancing identity verification systems with biometric technologies.
Developing innovative solutions to meet cybersecurity compliance standards.
Cloud computing and infrastructure
Designing scalable and fault-tolerant cloud architectures.
Developing serverless computing solutions for cost efficiency.
Optimising resource allocation and load balancing in cloud environments.
Innovating multi-cloud or hybrid cloud strategies.
Enhancing cloud security to meet stringent regulatory requirements.
Big data and analytics
Developing tools for processing and analyzing large datasets in real-time.
Creating innovative data visualisation solutions.
Optimising storage and retrieval systems for improved performance.
Building predictive models for market or user behaviour analysis.
Enhancing tools for data lifecycle management and compliance.
Blockchain and distributed ledger technology
Developing blockchain-based applications for secure transactions.
Creating smart contracts for automated and transparent processes.
Researching new consensus algorithms to improve blockchain efficiency.
Ensuring interoperability between blockchain networks.
Innovating tokenisation platforms or decentralised finance (DeFi) tools.
Internet of Things (IoT)
Developing blockchain-based applications for secure transactions.
Creating smart contracts for automated and transparent processes.
Researching new consensus algorithms to improve blockchain efficiency.
Ensuring interoperability between blockchain networks.
Innovating tokenisation platforms or decentralised finance (DeFi) tools.
Augmented reality (AR) and virtual reality (VR)
Creating immersive AR/VR experiences for training or entertainment.
Developing platforms for real-time 3D rendering and interaction.
Enhancing AR/VR hardware to improve resolution and usability.
Building security frameworks for IoT networks.
Researching haptic feedback technologies to enhance user experiences.
Hardware and electronics development
Designing and prototyping new electronic devices or components.
Innovating embedded systems for unique hardware-software integration.
Enhancing the durability, performance, or efficiency of existing devices.
Researching new materials for hardware production.
Optimising manufacturing processes for advanced electronics.
Sustainability and green tech
Developing energy-efficient algorithms or technologies.
Researching methods to reduce the carbon footprint of tech operations.
Innovating solutions for sustainable data centres or cloud infrastructure.
Creating tools for monitoring and reducing environmental impact.
Building platforms for managing renewable energy resources.
Other activities
Gaming and digital media
- Developing new gaming engines or mechanics.
- Creating innovative tools for real-time rendering or physics simulations.
- Enhancing multiplayer gaming systems for low latency and high scalability.
- Building platforms for immersive user-generated content.
- Innovating AI systems for non-player character behavior.
Testing and validation
- Developing in-house tools for testing software or hardware performance.
- Conducting rigorous stress tests to meet regulatory standards.
- Creating automated testing frameworks to improve development cycles.
- Testing prototypes to validate feasibility and performance.
- Innovating simulation environments for advanced testing.
Regulatory and compliance activities
- Developing solutions to ensure compliance with GDPR, HIPAA, or other standards.
- Designing systems to handle cross-border data transfer regulations.
- Innovating processes to meet industry certifications.
- Validating software or hardware to comply with environmental or safety regulations.
- Building tools for real-time compliance monitoring.
Why choose QLC?
QLC and our portal help businesses like yours claim R&D tax credits and tax relief faster and more successfully than ever.
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See your money in 16 days
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Technology sector R&D tax credit FAQ
What activities in the technology sector qualify for R&D tax relief?
Qualifying activities include:
- Developing innovative software, AI, or machine learning models.
- Enhancing cybersecurity systems.
- Designing new algorithms or optimising existing ones.
- Developing blockchain or IoT solutions.
Innovating in hardware, cloud computing, or big data analytics. Any activity that seeks to overcome technological uncertainties or advances knowledge in your field may qualify.
Do software development projects qualify for R&D tax relief?
Yes, as long as they involve overcoming technical challenges, such as:
- Developing new frameworks or platforms.
- Solving scalability, interoperability, or security issues.
- Creating custom solutions that go beyond standard practices.
Do routine updates or maintenance work qualify?
No, routine updates, maintenance, or debugging do not qualify. Only activities that involve addressing technical uncertainties or making technological advancements are eligible.
Does developing tools for regulatory compliance qualify?
Yes, if the work involves solving technical challenges, such as developing encryption tools for data security or creating automated compliance monitoring systems.
What documentation do I need to support my claim?
Documentation is essential. Keep records of project goals, design challenges, testing processes, and results. Notes on design iterations, technical drawings, testing reports, and even emails discussing project progress can all help support your R&D claim.
Form Title
What costs can technology companies include in their R&D claims?
- Salaries and NICs for staff involved in R&D.
- Software licenses and tools used for development.
- Subcontractor costs (capped at 65% of the eligible amount).
- Consumables, such as cloud hosting for prototypes.
- Prototyping and testing expenses.
Can we claim for cloud hosting costs?
Yes, if the hosting is directly used for R&D activities, such as running simulations, training AI models, or testing applications.
Are third-party developer or consultant fees eligible?
Yes, subcontractor costs can be included at 65% of the qualifying expenditure if the subcontractor contributed to the R&D work.
Can we claim for training costs for employees involved in R&D?
Training costs themselves are not eligible, but the time employees spend applying that training to R&D activities is.
Are SaaS subscription fees eligible for R&D tax relief?
SaaS costs may be eligible if the software is used directly in qualifying R&D activities, such as development, testing, or simulation.
What documentation is required for an R&D tax relief claim?
- Technical reports detailing the project’s challenges and innovations.
- Evidence of time spent on R&D (e.g., time tracking or project logs).
- Financial records of eligible expenses (e.g., payroll, invoices, software licenses).
Do we need to submit detailed technical reports?
- The problem you aimed to solve.
- Why existing solutions were inadequate.
- How your work advanced technology or addressed uncertainties.
What happens if HMRC challenges our claim?
If HMRC challenges your claim, you’ll need to provide additional evidence or clarification. Working with an experienced R&D advisor can help ensure your claim is robust and well-documented.
Are AI and machine learning projects eligible for R&D tax relief?
- Developing new algorithms.
- Optimising models for performance or scalability.
- Creating innovative tools for automation or decision-making.
Can we claim R&D tax relief for blockchain development?
Absolutely. Blockchain projects often qualify, especially if they involve:
- Developing smart contracts.
- Improving blockchain efficiency.
- Ensuring interoperability across platforms.
Does migrating to new platforms or systems qualify as R&D?
Only if the migration involves solving technical uncertainties, such as ensuring compatibility or optimising performance.
Many architecture companies work with specialist advisors like us to ensure they maximise their claims and comply with HMRC’s requirements. Why not get in touch or start a trial of our R&D tax claim portal?