Could a better understanding of R&D tax reliefs cure clinical trial woes?

With the Pandemic seared into the memory of those who lived through it, it is understandable that a greater interest is being taken in the future of medicine.

Despite this, the mechanisms for developing advances in the UK are not as strong as they once were.

A greater understanding of R&D tax relief claims could embolden innovative businesses and the accountants who help them to push further when seeking an advance.

Are clinical trials declining in the UK?

The Association of the British Pharmaceutical Industry (ABPI) has raised concerns that clinical trials in the UK are losing their effectiveness and that innovation could be at risk.

The ABPI’s annual clinical trials report indicates that the number of patients recruited to UK industry clinical trials in 2024/25 fell for the fourth year in a row to 19,092, which is the lowest number since 2017/18.

This fall in clinical trial recruits seems to run counter to the finding that there was a 35.7 per cent increase in trial initiations in the UK in 2024, with 578 trials initiated, up from 426 in 2023.

From the research, it seems that clinical trials are operating with far fewer participants than previously, even as the sector seems keen to initiate more trials.

Declining participation rates could lessen the efficacy of the clinical trials, as more diverse sample sizes will typically yield better results.

For those familiar with R&D tax reliefs, these findings may be as baffling as they are frustrating.

How can R&D tax reliefs improve the quality of clinical trials?

Any payments made to clinical trial volunteers can be included in an R&D tax relief claim.

This means that if there is a financial reason why innovative businesses are slashing sample sizes, it could speak to a lack of awareness of the R&D tax relief scheme.

In terms of handling a clinical trial in an R&D tax relief claim, much of the work would centre on the technical narrative.

With innovations in medicine, HMRC are generally understanding of what the innovation is and it can be relatively straightforward to demonstrate the quality of a competent professional.

To bolster clinical trials, it would be worth addressing in the technical narrative why the number of clinical trial volunteers was selected.

As such, innovative businesses may benefit from targeted recruitment drives that seek to create a broad cross-section of society to partake in the research.

This would strengthen an R&D tax relief claim as it would be apparent why the number of volunteers was required and the costs associated with them would be understandable.

Accountants looking to help clients with R&D should be aware of the full scope of costs that can be included in an R&D tax relief claim.

A lack of awareness can harm innovative businesses as they may limit the work they do for fear of financial failure.

R&D tax relief claims can yield a financial boost even if the project is abandoned or unsuccessful.

In the world of clinical trials, where there is a considerable gap between developing something in a petri dish and applying it for human use, the safety net of an R&D tax relief claim can be important where other sources of funding may be strained.

Seeking the support of an R&D tax consultant is vital for helping a wide range of innovative businesses across all eligible sectors.

Our experts are familiar with the intricacies of the HMRC guidelines, so we can ensure that all valid costs are captured and that innovation is well represented in the technical narratives.

We work alongside both accountants and innovative businesses, improving the overall understanding and quality of R&D tax reliefs so that more advances can be achieved.

Get in touch with our team to cure your R&D tax relief confusion.  

Adam Bointon

Adam Bointon is a Technical Director specialising in R&D Tax Credits for SMEs in manufacturing and software sectors. With over 15 years’ experience, he works closely with businesses to identify qualifying R&D activities and prepare clear, compliant claims. He combines technical expertise with a strong understanding of economics and finance to support successful outcomes. Adam also contributes to industry webinars and CPD sessions, sharing insights on R&D tax relief and HMRC requirements.