Claiming R&D Tax Incentive for Firmwares and Controllers

We at Innercode have aided several clients who were able to successfully claim the R&D tax incentive for the development of their firmware and controller. Most of these components, including memory controllers, microcontrollers, network controllers, and graphic controllers are developed using programming languages such as C and C++ that can implement instructions on a machine level. Hence, some of the most common Research & Development in this field can be related to writing algorithms.

Below are some examples of core Research & Development activities in this field:

1. Creating a new algorithm or significantly improving the existing ones
2. Creating innovative designs to reduce the cost of developing controllers while maintaining the same performance
3. Designing a controller with smaller power consumption
4. Improving firmware security to avoid hacks
5. Developing firmware upgrades that enhance a hardware’s functionality

Supporting activities can vary depending on whether the activity favours the software or hardware aspects of firmware and controllers. Here are some of the most common supporting activities in the field:

1. Conducting a literature review before conducting experiments to find out whether the knowledge to solve the technical problem exists
2. Assembling and training prototypes for controllers
3. Creating test cases
4. Planning and managing tasks involved in the conduct of the core activity

Although there can be many technical activities involved in developing firmware and controllers, they will only be considered a valid core R&D activity if they meet the eligibility requirements outlined below:

1. It was impossible to predict how the experiments would be successful or not
2. Only by using a systematic progression of work that progresses from a hypothesis to experimentation, observation and evaluation, and drawing of logical conclusions could the outcome of the activities be known.
3. The goal of doing experiments is to generate new knowledge
4. Expenditure was unquestionably made on an R&D activity that qualified

For more information on eligibility requirements, please review our article.

Self-assessing the eligibility of firmware and controllers -related development activities may seem complicated, but we made it easy with our R&D Tax Incentive eligibility check.

We have years of experience delivering R&D tax incentives for tech companies – many of which specialise in firmware and controllers. We understand that your case may require further assessment, please feel free to book a free consultation with us to answer all your questions regarding the R&D tax incentive scheme.