Chat with us, powered by LiveChat

From talking to biotech companies and CROs, we know there's lots of confusion around eligibility when it come to the UK Government's R&D tax relief scheme.

Get it right and you have the basis of a potentially significant claim. Get it wrong, as a lot of life sciences companies do, and you could end up with a swarm of HMRC inspectors buzzing around your head.

As the UK's leading R&D tax relief specialist, let us share a few of the secrets to successful claims with you.

DON'T UNDERESTIMATE YOUR UPFRONT COSTS

This applies to all biotech, but pharma in particular where the time taken to get first idea to market placement of a new drug can be enormous, along with the associated costs. For fear of over-claiming, traditional tax advisors typically take the 'safe' route of advising clients that the time spent at these very early stages isn't eligible, when in fact it is.

IT'S OK TO FAIL

No one likes a research project to fail but from an R&D tax relief perspective, this is often a sign of eligibility. This applies to all areas of biotech, but especially animal breeding where the considerable time and effort devoted to genetic analysis of agriculturally important organisms or phenotypes doesn't always pay off, at least not in project terms. The good news is that the same technical difficulty that caused the project to fail could also form the basis of a significant claim.

THE SAME BUT DIFFERENT

If you're involved in pilot production, there are a few more things you should know. Diagnostic companies that produce pilot assay kits, reagents or solutions, for example, can't claim for lost production or opportunity costs, but can claim for the staff time, raw materials, subcontractors, software and utilities that go into the development and testing of these products. It's subtleties like this that can make all the difference between a successful claim and one that sparks an HMRC enquiry.

GROUNDBREAKIGN OR JUST RAKING OVER OLD GROUND?

It doesn't matter how intricate or tailored the final result may be. Simply reconfiguring an existing IT package doesn't constitute R&D in the eyes of HMRC. Medical devices companies need to be especially wary of this, but it applies to the whole of the biotech sector.

PARTNERSHIP IS THE WAY TO GO

The key point to take out of all these examples is that specialist knowledge is key. With a proven track record of making literally hundreds of successful claims for biotech and contract research organisations, Jumpstart represents a simple and effective way to boost much needed funding.

Isn't it time you joined other biotech and CROs in securing your share of R&D tax relief?

For a free R&D tax relief consultation and analysis of potential returns, contact us today!

Related Articles

jumpstart favicon

There’s nearly £3bn in R&D tax credits to be won. How hungry are you?

Forget the artwork, forget the compelling storylines, forget the enthralling soundtrack, a modern game is a masterpiece of software development, just as likely to hide serious software research and development as the most sober business or technical application.

8th August 2018
General R&D tax guidance & advice

Claiming R&D tax relief for web developers

Website developers may appear to have little in common with scientists – yet some of the more complex sites can o cially be classed as research and development projects, which means that developers can claim tax relief for the work.

4th July 2018
Industry Fact Sheets
Please fill out your information below to get your PDF download.
Jumpstart white asterisk
Jumpstart your R&D tax credits…Call us on 0844 967 2626