The UK Government's R&D Tax Relief allows any company to get back some costs that it had spent on innovation, which includes custom ERP development, in the form of tax credits or cash rebates.
Any UK incorporated company engaged in eligible R&D, such as developing or improving software, systems, or processes, can claim, whatever its industry or size.
An ERP upgrade qualifies for R&D, under HMRC's guidelines, if it is undertaken to resolve technical uncertainties. Technical uncertainties can arise, for example, when new integrations need to be developed, processes automated, or custom modules built.
Grant-funded ERP works include custom workflows and backend logic, API integrations, automated reporting, real-time dashboards, and advanced data migration techniques.
It is required to submit the technical justification report and financial breakdown along with the CT600 tax return. Usually, companies work with an R&D tax specialist or with their ERP partner in documenting and filing the claim.
Small and medium-sized enterprises are entitled to up to 33 percent of qualifying R&D expenditures, whereas larger enterprises under RDEC can recover some 13 percent. Claims can also be made for retroactive periods of the previous two financial years.
In the ordinary course, claims for R&D tax credits would be processed by HMRC, depending on project and claim documentation complexity, in between 4 and 8 weeks.
Silent Infotech offers services concerning ERP-eligible R&D work like the design and development of custom ERP modules, AI-based automation, third-party integrations, performance tuning, and security enhancements-well documented for purposes of R&D tax relief.