In the field of contract research and biotechnology the eligibility of projects for R&D tax relief is rarely in doubt.
However, many biotechnology companies and CROs are unsure if they can claim because of the circumstances of their projects, whilst others submit unsuccessful claims as a result of misunderstanding the guidelines. So, when it comes to claiming R&D tax relief for the biotechnology sector it is not so much about the identification of eligibility, but about understanding the regulations.
"MY WORK IS SUBCONTRACTED"
Subcontracting is a tricky area of R&D tax relief and this is particularly relevant for CROs, which are almost always subcontracted to carry out research for other companies. In actual fact, sub-contracted work can be claimed for, providing it complies with HMRC’s guidelines and your claim is accurate. In a recent case, one CRO seeking to improve ways of testing pest control products had been advised not to claim on account of being a subcontractor. The complexity of this area would have been enough to deter most individual claimants, but Jumpstart’s technical knowledge of both the industry and guidelines allowed the CRO to submit a successful claim of £80,000.
"I RECEIVE GRANT MONEY"
Grant funding can impact an R&D tax relief claim and success depends on the kind of funding received and what it is used for. Many biotechnology companies rely heavily on grants to fund research projects and, claimants must keep up-to-date with the very latest interpretation of HMRC’s guidelines to avoid any pitfalls. Do you know the implications of receiving a state aid grant? Do you know the difference between the RDEC and SME scheme? These are areas that must be addressed in order to submit a successful claim.
"IT'S JUST NOT WORTH IT"
Many involved in the business of biotechnology are well versed in submitting proposals and applications – after all, competition for funding can be fierce and nothing is guaranteed. The complexity of an R&D tax relief claim can make it a laborious process, which is why many businesses are now choosing to take the complexity out of R&D claims by progressing with an R&D tax relief specialist, like Jumpstart, allowing them to concentrate on more pressing proposals while maximising their returns from HMRC.
