Claimable expenses for software engineers

With the rise of the IoT, AI, AR, Fintech and much more, comes the rise of software engineers. A software engineer is an individual who develops various applications that enable users to accomplish tasks. Like all professions, software engineers come in the form of either employed or self-employed.  

Software engineer’s salary bracket is regarded as one of the highest in the UK ranging from around £30,000 to £300,000, depending on seniority and ability. This means that many fall into the tax filing bracket whether they are self-employed or not.

This article will focus on breaking down some of the different expenses and reliefs that can be claimed as a software developer:

Image by illustrator Jasmin Sahra

Image by illustrator Jasmin Sahra



R&D Tax Relief 

R&D relief is available to science and technology companies that work on innovative projects. Software companies who seek to research or develop an advance in their field can claim the relief.

We will be covering more information as to how R&D relief can be claimed and to what amount in a following article.

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Enterprise Investment Scheme (EIS)

Enterprise investment schemes are a tax credit that can be claimed by software companies and offer a 30% relief. Allowing investments of upto £1million in an EIS-approved company.


Seed enterprise investment scheme (SEIS)

Similar to SEIS, however seed enterprise investment schemes allow investors to get 50% income tax credit rather than the 30% allowed in EIS. When an investor sells their shares in the company, the transaction will also be capital gains tax free, if the shares are sold after three years.


Office costs 

Many self-employed software engineers will have a number of office costs that are necessary to achieve their job role. I.E. computing devices and stationary.

Items such as computers should be offset as a capital gain, while items such as stationary should be claimed as a regular expense.

Contact us for support specialist tax advice for software engineers