MiFID II creates opportunities for savings for firms through R&D Tax Credits

MiFID II is nearly here and technological enhancements, as a result of MiFID II, have been a critical part of the change process and are expected to continue well into the future.

Has your firm spent time on software research or development in respect of Best Execution, or Transaction Reporting to meet your pre and post-trade transparency requirements?

Many companies have had to undertake further development and extending their software solutions and this is where R&D tax credits come into play. Whether you have had to hire additional specialist IT resource, or invested to extend or purchase a new proprietary platform built from the ground up, or a third party platform tailored to meet unique requirements, there may be scope to claim back a portion of the development costs related to R&D activity. In addition, development to ensure that the data captured and reported is sufficiently detailed to me meet the increased scope of MiFID II has the potential to qualify as R&D.

R&D tax relief claims can be highly beneficial for companies, receiving up to 33% of the total R&D costs as a direct cash back, if successful. This lucrative incentive enables companies to look back up to three years, allowing companies to take advantage of retrospective costs incurred on research and development activities.

If you have never made an R&D claim, and are unsure of the potential benefit, we could help you ascertain an estimate of the quantum before you decide whether or not to proceed. On the other hand, if you have made successful claims in the past, you may have overlooked potential qualifying activities which could have been claimed. Our second opinion service may help you include additional costs and thus create a more substantial benefit.
If you are interested in finding out more information, please read our latest factsheet. Please feel free to reach out to our regulatory consulting team who, together with our tax specialists, would be delighted to discuss this opportunity with you.

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