The government’s research and development (R&D) tax credits scheme is rewarding innovation. Despite innovation being present in many aspects of veterinary practice, vets fail to reap the scheme’s generous financial rewards.
Figures published by HMRC show that businesses within the sector collectively miss out on claiming R&D tax credits every year.
Your project must extend existing knowledge or capability to qualify as R&D for tax purposes. We’ll need to present to HMRC how your solutions have gone above industry standard levels for a successful claim.
If the knowledge or capability is already available and your company is seeking only to bring itself up to speed, this does not qualify for R&D tax credits.
Veterinary projects that may qualify for R&D tax relief include:
- Stem cell and laser therapy
- Repurposing human medication and surgery techniques
- IT software programs to maintain and organise test and lab results
- Studies to understand the physiological effects of different treatments
- Controlling animal disease and studies to understand the behaviour of emerging pathogens and diseases
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.
Interested in claiming R&D tax credits?