R&D Tax Credits for Science & Medicine Industries
What is the R&D tax credits scheme?
The government’s R&D tax credits scheme is designed to support innovation and, as a result, is ideally suited to many businesses within the science and medicine industry. It rewards enterprises for resources that are spent on research and development by way of government support that can be used to fund further ongoing research. Making an annual claim for R&D tax credits has been transformative for many businesses across science and medicine – this is how it works.
The scheme rewards companies in the UK that are focused on advancing and developing innovation, so it’s an ideal fit for many in the science and medicine industry. The scheme is divided into two parts, one for SMEs and one for larger companies. Under the R&D tax credits scheme, a business that is investing in innovation can receive a cash refund from HMRC, or a corporation tax bill deduction, linked to the amount that has been spent on qualifying R&D activities. SMEs making a successful claim under the SME scheme, for example, can claim up to 33% of the costs associated with innovation, which is the equivalent of 33p in every £1 that has been spent on activities that count as eligible R&D.
Does the scheme apply to the science and medicine industry?
Given the number of enterprises in the UK focused on advances and innovation, R&D tax credits are ideally suited to this industry. It rewards companies for resources dedicated to innovation, so the more that is spent on qualifying activities, the higher the claim can be. To qualify for these tax credits, activities must fall within the definition of qualifying R&D. This has been left intentionally broad so that as many research and development processes as possible can qualify. Projects don’t need to be groundbreaking or high profile to receive R&D tax support – they need to be employing activities that are designed to research and develop.
These are just a few examples of the R&D activities likely to qualify under R&D tax credits. It is by no means an exhaustive list. What is crucial is that the project carries with it an element of uncertainty, and the business has created its own blueprint/work for the process.
- Adapting pre-existing drug formulations.
- Projects that are focused on developing sustainable materials.
- Researching and creating prototypes.
- Creating new software for use by those in the healthcare industry.
Claims for R&D tax credits can be substantial and provide a great funding source for ongoing innovation in the science and medicine industry. They are ideally suited to any enterprise looking to innovate to advance the field and find fresh solutions to old challenges that couldn’t be readily deduced by a competent professional.
Apply Now for an R&D Tax Credit Loan through SPRK Capital and access your funding quicker. Contact us for more information.
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