The R&D tax credits scheme aims to encourage commercial research and development conducted by private companies in various fields, including medicine, biotechnology, computer science, information technology, finance, law, and business. In return for investment in the innovation for bringing improvement in the fields of science and technology, companies get the highly profitable reward as cash credits or tax relief from the UK government. The program is primarily designed to support those who perform basic scientific research in their organisations to create new services or products or improve existing ones.
Which Companies Can Take Benefit From R&D Tax Credits?
The R&D tax credits scheme is very generous, allowing any UK-based company meeting the following criteria to claim their R&D rewards irrespective of the domain they are working in.
- Seeking innovation through the creation of new products or services
- Improving existing services and products through technological advancement
- Resolving scientific or technical uncertainty with the help of professionals
R&D Tax Credits for Healthcare Sectors
The healthcare industry is one of the biggest industries in the UK, which is no more limited to hospitals and private healthcare clinics. The Healthcare sector comprises many small segments that contribute to research and development, such as pharmaceutical labs, medical manufacturers, MEDTECH, etc. In the healthcare sector, there is great potential for research and development as it revolves around creating new products, improving existing products and technologies, and creating improved latest processes to make everyone’s life better.
During this global pandemic, the importance of the healthcare industry became more prominent in the way coronavirus testing kits were developed on a vast scale, along with life-saving drugs. In addition, research and development in this sector led to the creation of coronavirus vaccines for the whole world to save us from the pandemic. The UK government is aware of the healthcare sector’s contributions; therefore, to encourage this sector for innovation government rewards it with R&D tax credits. R&D tax credits help all the companies keep their scientific and technological advancement going. As research and development work does not provide results immediately, it requires a lot of processes and investment; therefore, R&D funding is highly lucrative to keep the work going and maintain your company’s cash flow.
What Qualifies for R&D Tax Credits Claim In Healthcare Sector?
This is a general assumption that the medical sector is not directly involved in scientific research except for the pharmaceutical industry; therefore, it cannot qualify for the R&D tax credits claim. However, in one way or another, every aspect of healthcare is involved in scientific or technological research and development.
Examples of medical processes and projects that might qualify for the R&D tax credits claim are:
- Develop software for the healthcare sector to help medical staff keep patients’ records and medical history.
- Bespoke software to improve internal operations
- Development of devices and equipment for surgical and non-surgical applications.
- Chemical research for discovering drugs to cure various diseases effectively.
- Chemical testing for the creation of drugs
- Development of new devices to monitor patients for diagnosis
- Creating new and improved testing methods to enhance result efficacy and efficiency.
- Clinical trials and prototype testing to determine the success of the research and development project.
- Wearables such as monitors and activity trackers, for example, activity bands used for quarantine during a pandemic.
- Biomedical advances such as 3D prints.
- Development of telehealth monitoring devices such as oximeter and pulse rate monitor for heart patients.
- Development of the latest devices for procedures like new forms of stents for heart surgery.
- Drug formation with lesser side effects.
What Costs In HealthCare Sector For Can Claim For?
HMRC allows you to claim R&D tax credits for the eligible expenditure you made in seeking innovation. We can divide eligible costs into the following categories:
You can claim for salaries, pensions, NICs, and wages of the employees directly involved in research and development projects.
• Subcontractors Cost
Eligible costs also include costs of part of the project subcontracted to the third party.
• Cost of Utilities
electricity, water, and heating expenditures.
Costs of raw materials consumed in the research and development project, such as chemicals and electronic components.
• Software development costs
Eligible costs include software licence costs used for research and development projects.
How Can You Claim R&D Tax Credits?
If you are undertaking any research and development project, contact R&D tax credits specialists who will assess your projects to find your eligibility. You can claim by yourself, but it is advisable to claim with R&D tax specialists, who can help prepare a robust claim for you. R&D tax specialists will ensure your maximum benefit and protect your claim from an enquiry. Contact us now, and we’ll manage your claim from the first step till you receive maximum benefits. Your process is streamlined, and we ensure you receive R&D tax credits within a few days.