R&D tax relief can help offset the cost.
Just over two years since the launch of Magento 2, the migration is underway – but it is still causing major problems for some online retailers.
The latest version of the world’s most popular e-commerce system o ers faster response times and greater ease of use and this, together with concerns that Magento may stop supporting version 1, are all driving uptake.
However as the two versions are built on different frameworks, merchants moving from Magento 1 are finding that many existing extensions and apps are incompatible – and in some cases they are losing thousands of pounds a day in sales as a result.
Resolving these issues is tricky but the good news is that the work is likely to qualify for R&D tax relief.
In fact, issues relating to Magento 2 are now one of the most common reasons for claims in the e-commerce sector, according to Adrian Williamson, a former software development manager and engineer who is now an expert on R&D tax credits with Jumpstart.
“We are receiving many enquiries from people trying to integrate Magento 1 and 2. They are finding that the existing modules don’t work and often there are no appropriate ones immediately available,” he says.
“In six to 12 months’ time, no doubt someone will have written one but many merchants can’t afford to wait that long, so developers are having to put in a lot of effort to find a solution now. Work of this type which involves prototyping, experimentation and subsequent integration will most likely qualify as R&D and be eligible for claims.
“R&D tax credits can help offset the expense involved in fixing these issues, however you need to use an adviser who understands both the technical issues and the tax rules to be sure that your claim is eligible.”
Do you recognise any of these situations?
Or have a project that may fit the bill? If so, speak to a specialist adviser as interpreting the rules correctly and using the right terminology is crucial to success with any claim.
Adrian Williamson has over 30 years’ experience as a software engineer. He is now an expert on R&D tax credits, advising clients in web and app development, third party integration, IT infrastructure, SEO and cloud technology.
To book a free consultation with Adrian, contact the Jumpstart team on 0330 134 5730 or email email@example.com