Innovation Grants for Software & R&D Tax

Fuel Growth in Software Innovation with Public Funding

The UK’s thriving digital economy is built on software innovation — from scalable SaaS platforms to advanced cybersecurity and data analytics tools. For companies investing in software development, public funding support can significantly reduce the cost of innovation.

FI Group helps UK businesses maximise access to Innovation Grants for Software Projects and optimise R&D Tax Relief for Software Development, turning your technical challenges into tangible financial support.

Innovation Grants for Software Projects in the UK

UK and European grant bodies routinely launch funding calls aimed at software-driven innovation. These grants support the development of novel digital solutions, platform technologies, and scalable software products across sectors.

Key Themes for Software Innovation Funding:

AI-powered and data-driven platforms
Cybersecurity and privacy tech
Fintech and insurtech innovation
Healthtech software and medical platforms
Cloud infrastructure and edge computing
Software to support net-zero, sustainability, and smart cities

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Examples of Grant Competitions:

Innovate UK Smart Grants: Supports disruptive software-led R&D with commercial potential
Digital Security by Design: Aims to make systems more resilient to cyber threats
Horizon Europe ICT Calls: Funds EU-wide collaboration on next-generation digital technologies
Creative Industries Fund: Supports interactive media, gaming, and immersive content development

FI Group can help you evaluate eligibility, write compelling applications, and manage submission timelines effectively.

Grants Management Service

Examples of Grant Competitions:

Innovate UK Smart Grants: Supports disruptive software-led R&D with commercial potential
Digital Security by Design: Aims to make systems more resilient to cyber threats
Horizon Europe ICT Calls: Funds EU-wide collaboration on next-generation digital technologies
Creative Industries Fund: Supports interactive media, gaming, and immersive content development

FI Group can help you evaluate eligibility, write compelling applications, and manage submission timelines effectively.

Grants Management Service

Software

Latest Grants

Explore the latest UK innovation grants supporting software innovation, development, and digital transformation.

R&D Tax Relief Software Development

Most software R&D projects in the UK are eligible for generous R&D Tax Relief, particularly where the development involves technical uncertainty, novel architecture, or bespoke functionality.

Typical Eligible Projects:

Developing new software frameworks or algorithms
Creating systems to process large, unstructured datasets
Overcoming performance, scale or integration issues
Developing new APIs, microservices, or architecture
Building proprietary platforms not readily deducible from existing knowledge

Available Tax Relief Schemes:

SME R&D Tax Relief: Enhanced deductions and repayable credits for eligible smaller businesses
RDEC / Merged Scheme: For larger organisations or where project costs are grant-funded
R&D Intensive SME Support: Enhanced benefits for loss-making software companies investing heavily in R&D

FI Group ensures your software R&D claim aligns with HMRC guidance and includes all relevant qualifying costs, such as salaries, subcontractors, cloud hosting, and licensing fees.

How to Know If Your Software Project Is Eligible

A project may qualify for R&D Tax Relief if it involves:

Addressing technical uncertainties not easily solved by a professional
Developing new or improved technology — not just user features
Systematic design, testing and debugging over time
Producing functionality that was not commercially available

FI Group’s technical experts — including software engineers and tax professionals — work closely with your team to document and justify your activities.

Combining Innovation Grants and R&D Tax for Software

It is possible to claim both — but the grant type determines how tax relief can be applied:

Notified State Aid grants (e.g. some Innovate UK calls) restrict SME tax relief on that project
However, RDEC or merged scheme can still be claimed for overlapping costs
FI Group helps apportion grant vs. self-funded costs and apply correctly across schemes

This strategic approach ensures you maximise total support without breaching state aid or compliance rules.

Why FI Group for Software Innovation Funding?

Over 20 years of global innovation funding experience
UK-based specialists in digital, software and cloud technologies
Technical writers and tax consultants with deep software expertise
Industry-leading compliance and audit-ready documentation
Local support with offices in England and Scotland, plus access to 20 international markets

Whether your focus is B2B SaaS, embedded systems, or consumer apps, we understand the development lifecycle — and how to match it to funding schemes.

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Why FI Group for Software Innovation Funding?