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R&D Tax Credits for Agriculture, Forestry and Fishing

With population growth, warmer temperatures and drier soils, the future of agriculture, forestry and fishing would look bleak if the sector weren’t to take full advantage of the government’s research and development (R&D) tax relief scheme.

The scheme is readily rewarding businesses that put investment, research and innovation into tackling these significant challenges. With Brexit done and hopes of a greener, post-pandemic world, the government is eager to put the UK firmly at the centre of the agri-tech revolution.

Whether it’s big data, drone technology, robotics, vertical farming, the need for R&D in the industry is enormous. Yet, many agriculture businesses are still drastically underclaiming the R&D tax credits available to them — or aren’t even claiming at all. You could also be missing out on tens of thousands of pounds to plough (no pun intended) straight into your business to spend however you choose.

Many agriculture, forestry and fishing companies view activities that are rich in R&D as merely the day-to-day running of their business. Others are put off by the complexity of making a claim. Added to this is the lack of confidence many businesses have in distinguishing between qualifying R&D activities and routine development that wouldn’t typically qualify, which is where we come in.

R&D tax credits can unlock the answers to benefit farmers, our entire food system, and every person who eats. If your company invests time, money and resources into software and technology development, there are likely claims to be had.

Farming projects that may qualify for R&D tax relief:

  • Fertilisers, pest and weed control
  • Adapting to atmospheric conditions e.g. silage wrap
  • Development of new machinery and components
  • Adaption of existing machinery, e.g. robotics
  • Maximise yield through soil management and smart irrigation
  • Processes to reduce waste or reuse waste products e.g. bio-fuels
  • Feed supplements to improve livestock production/reproduction
  • Use of sensors, drones and satellite technology
  • Vertical farming or hydroponics
  • Training to support R&D

Key questions on R&D tax relief answered

What activities can be included in a R&D project?

  • Defining technical objectives
  • Identifying uncertainties
  • Feasibility studies, reviewing new and competing technologies
  • Analysing, designing and developing the technology
  • Producing technical specification or other documents to explain and support the R&D project and advancement
  • Testing the product, process, service or software
  • Planning and managing projects
  • Administration, finance and personnel services specifically required to support R&D activities
  • Training to support R&D

What expenditure can be claimed for in a R&D project?

  • Staff Costs – Employee costs (salary, national insurance and employer pension) are apportioned for their time spent on the R&D project plus any reimbursed associated business expenses
  • Software – Purchased for R&D purposes and costs apportioned for any subsequent use
  • Subcontracted R&D – You can claim 65% of what you paid your R&D subcontractor
  • Utilities & Consumables – Water, fuel, power and material used in the project
  • Prototypes – Produced for R&D purposes

About Easy R&D’s R&D tax credit claim process

Claiming R&D tax relief is a niche.

Here at Easy R&D, we’ll probe your company’s activities to reveal the true extent of your company’s R&D.

Averaging £54,000 per claim, we’re a business built around expert tax professionals, skilled technical report writers, and flawless processes to ensure your R&D claims are successful — with maximum return. You could even reduce your corporation tax bill to zero.

HMRC’s criteria for claiming is purposefully broad, so what qualifies may surprise you.

“We weren’t aware of the claim until Paul Harrison got in touch with us and explained the R&D claim process. Paul helped us on how to go about it and opened our eyes to what we should be doing. We are very pleased with the service; it was very good.”

Horticulture client

Interested in claiming R&D tax credits?