The financial services industry is no stranger to innovation, and software development plays a critical role in achieving a competitive edge. This focus on bespoke solutions opens doors to claiming valuable R&D tax credits.
Here's why financial services companies qualify:
- Developing in-house software: This is prevalent across various segments, including insurance, banking, trading, hedge funds, and investment firms.
- Integrating disparate systems: Merging new bespoke software with existing legacy or third-party systems often involves technical challenges and experimentation, qualifying for the credit.
- Contracting out development work: Even when using external contractors for development activities, companies can still claim the credit.
By recognizing the R&D opportunities within their operations, financial institutions can unlock substantial tax savings and fuel their ongoing journey of technological transformation.
R&D Tax Credit Qualification for Financial Services
The firm’s software development activities involved extensive research, testing, and collaboration among traders, developers, and risk managers. Projects typically ranged from developing advanced trading algorithms to building comprehensive risk management systems. The R&D was an ongoing, iterative process aimed at optimizing the firm’s trading performance and risk management capabilities.
R&D Tax Credits with GOAT.tax
With our consultative approach to the research and development tax credit, we invest time understanding each client’s history, current business direction, and future growth objectives. Each year we re-evaluate a company’s ability to accept the tax credit and provide on-going recommendations to improve the R&D tax credits process.