Life Science Industry
The life science industry is a diverse field encompassing various fields of science, including pharmaceuticals, biotechnology, nutraceuticals, food processing, biomedical technology, genomics, digital health and cosmeceutical sectors which aim to improve life in any way. This industry is among the dominant sectors in the UK economy, with a high productivity rate compared to the other sectors.
R and D tax credits scheme was initiate to boost innovation in the UK due to its impact on the UK economy. R&D incentives encourage businesses from all sectors to invest in advancements in science and technology and create new or improved products and services. The UK government announced a £60 million boost in funding for escalating life sciences manufacturing in the UK. Recently, in the budget announcement, we have witnessed an increase in the budget allocated for R&D from 2022 to 2025.
The life science industry is continuously seeking development to improve lifestyle and helps everyone around the world live a healthier and happier life. Life science sectors are a great contributor to the advancement in science and technology; hence UK government ensures that this sector gets the reward for its investment in seeking innovation.
R and D Tax Credits for Life Sciences Industry
Design, development processes, and testing in the biotechnology and life science industry involve abundant research and development projects. Companies in this sector involved in eligible projects can claim R and D tax credits and receive incentives as payable credits or reduction in corporation tax liability. It helps the company save money to reinvest in driving innovation.
R&D in Biotech & Life Sciences Industry?
Life sciences and biotech industries are not only about the creation of medicine or device, they are all about innovation and scientific advancement. Therefore, numerous qualifying activities for R and D tax credits claim are indulged in these. R&D claims reward companies from all domains; life sciences and biotech are no exception. Therefore, if your project is undertaking risks to resolve scientific or technical challenges, it is eligible to claim R and D tax credits.
Here are some areas of biotech and life sciences sector specific areas which you might be working on without being aware that they classify for research and development claims.
• Diagnostics
In the past few decades, diagnostics have been improved significantly and have revolutionised the medical world, especially after an outbreak of deadly viruses like coronavirus where traditional diagnostic methods couldn’t fit in, and new methods were required. Thanks to the research and development, we can now reduce diagnosis time and improve accuracy. For example, the creation of diagnostic tools with higher efficiency and accuracy for rapid clinical evaluation of patients with viral infections classifies as R&D hence you can claim R and D tax credits for it.
• Healthcare Technology
Healthcare technology has come a long way, driving all the changes in the healthcare industry. If your project seeks advancement in healthcare technology, then you qualify for R and D tax credits. For example, if you are trying to seek advancement in remote patient monitoring for rapid response, it comes under research and development.
• Medicine
Thanks to health research which enables us understand the condition to develop drugs for fighting new strains of viruses and diseases. Research and development have helped us fight global pandemics by creating life-saving treatments to ease the ones suffering. Finding more effective medicine for prevention of certain diseases or finding new applications for existing drugs also qualify for the R and D tax credits claim.
Examples Qualifying Activities in Life Sciences and Biotech Industry for R and D Tax credits Claim
These examples will help you relate to what R&D qualifying activities you are undertaking.
- Creation of the latest and improved medical devices for diagnosis and treatment
- Creation of new medicines or finding alternative usage of existing ones
- Alteration in the manufacturing process to make it more efficient
- Formation of prototypes for clinical and safety testing
- Development of software and algorithms
- Arrangement and analysis of large amounts of data
- Designing and developing software and hardware systems for research and clinical use
- Development of indicators, reagents, equipment or device for testing patient samples
- Development of a device for testing drugs
- Creation of better and improved testing methods and equipment
- Creation of new techniques or improvements in the existing ones for drug delivery
- Biological screening and pharmacological testing
- Improvement in existing products for increasing shelf life
- Calculation and analysis of a large amount of data
- Automation of manufacturing process
- Development of robotics for improvement of the manufacturing process
- Pharmacovigilance and safety studies
Other Funding Options For Life Sciences Industry
There are also many fundings besides R and D tax credits available for the life sciences and biotech industry, which can help the industry grow. These funding options include:
1. Life Sciences Innovation Mandating Fund (IMF)
IMF funding supports commercial-scale manufacturing companies working on innovative projects like cell and gene therapies and the latest diagnostic technologies.
2. UK Innovation And Science Seed Fund
The UK innovation and science seed funds help start building companies.
3. Innovate UK Smart Grants
Innovate UK smart grants support UK businesses working on research and development projects
4. MEDTECH Accelerator
The MEDTECH accelerator finance startups investing in enhancing technologies to change the life of patients.
5. Government Grants For Life Sciences
The UK government supports business across all domains, including life sciences, by providing grants and loans.
How Can Square Finance Support Your Business?
Square Finance is a team of R&D tax and accounting specialists, and years of experience working for the life sciences sector makes us different. We have a more profound knowledge of this sector, which helps us understand your company better and accurately identify eligible projects and expenditures. This ultimately enables us produce robust R and D tax credits claims for you, significantly increasing your claim value.
If you are undertaking any eligible R&D activities, contact our team of R&D tax experts, who will quickly do your project assessment to find out your eligibility status. Our R&D claim process is simple! All you need to do is give us details of what you do and how you do it, and we will tailor the R&D claim for you with all the calculations and computations. We’ll manage your claim from the start till you receive your R and D tax credits.
Start your claim process now!