Can software costs be claimed?

The cost of computer software or software licences utilised for Research and Development (R&D) purposes can generally be claimed. However, it is important to differentiate between software costs which would have been incurred irrespective of whether R&D took place – for example, Microsoft Office. The types of software costs that often qualify include CAD licences, R&D project management software, Finite-Element Analysis (FEA) tools, and DevOp tools.

Where software is used for both qualifying R&D and other purposes – for example, a CAD licence that is used in R&D but also for non-R&D product designs- an appropriate apportionment will need to be made to differentiate between the two.