R&D Tax Credits for the Agritech Sector
Any business in the Agritech sector in the UK could potentially have access to R&D tax credits that could be transformative for innovation and development. The advantage of R&D tax credits for the Agritech sector is that they provide resources for further innovation and to invest in research. Given the vital importance of technology in advancing agriculture there is a clear need to support the enterprises that are doing this crucial work at this time.
Why is Agritech so important?
There are many factors putting pressure on the agriculture sector today, from rising global population numbers to global warming and challenges with soil. Advances in technology hold the key when it comes to how to tackle these problems – Agritech is the future. It has been through Agritech developments that we have already begun to solve many of the problems that the agriculture industry faces. And when it comes to increasing yields, feeding global populations and managing the changing weather conditions caused by climate change, it’s going to be Agritech that drives us forward.
R&D tax credits for the Agritech sector
Agritech is a sector where scientists, engineers and technologists are working with a wide spectrum of established companies and start-ups to solve problems in agriculture, farming and food production. Many of the projects that are being carried out today in Agritech will be eligible for R&D tax credits. These incentives make it possible for businesses working in Agritech to recoup some of the investment that has been made in innovation and research. Given that recent figures showed a 11% drop in R&D expenditure in industries like agriculture there is clearly an incentive required to bring more resources into this critical area. The average claim for R&D tax credits is £42,7373, so the financial benefit can be significant.
What is likely to qualify as R&D in Agritech?
As there is so much innovation involved in a tech-driven sector like Agritech, it’s likely that there will be many activities that come under the heading of R&D. Some examples of projects that could qualify for this kind of support include experimenting with crop growth or animal nutrition in order to improve crop yields. Looking at ways to use more renewable technology in agriculture could also be covered. Creating new pesticides and fertilisers is another area where R&D tax credits could provide valuable support.
Agritech and sustainability
The developments and innovations of Agritech are going to have a vital role to play in making agriculture more sustainable. This is the technology that gives farmers the tools to increase productivity while at the same time reducing costs, using technology and data rather than seeking more land to farm. Big data and the role it will play in the future of agriculture is a prime example of how Agritech can contribute to a more sustainable future – and also of the type of Agritech project likely to attract tax relief.
R&D tax credits for the Agritech sector are open to any business with activities that might be eligible – and could provide five-figure funding for those that are successful.
How can SPRK Capital help?
SPRK Capital can provide expert R&D tax credit advice through our network of SPRK Approved Advisors. Once you’ve made a successful R&D claim, SPRK Capital’s R&D tax credit loans act as a form of advance funding, so you can access your capital sooner.
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