As R&D tax consultants, we try to keep up with the latest trends in R&D and a recent report from the World Health Organisation (WHO) reveals that cancer research is struggling at the moment.
Following the recent departure of large pharmaceutical companies from the UK, it is time for innovative businesses that still operate here to take a look at the current state of research and determine whether they can make an impact.
If R&D tax relief is all about funding innovation and advancing science, what better purpose could it serve than making headway with cancer research?
We take a look at what the WHO report could mean for UK R&D and what both accountants and innovative businesses could learn from this.
What are the problems facing cancer research right now?
Cancer research is an active and ongoing part of medical R&D with many innovative companies making significant strides over the years.
Better screening procedures and treatment protocols have resulted in a reduction of mortality for cancer patients, but more can and will need to be done in the future.
In particular, the WHO have identified that research is currently “disproportionately focused on novel drugs, while surgery, radiotherapy, diagnostics and palliative care remain underrepresented.”
This might be of particular interest for medical researchers in the UK where the current exodus of pharmaceutical companies is expected to shape the way that R&D is conducted.
The WHO is hoping for innovative businesses to find new and novel ways to manage and treat cancer that are more accessible for low and middle-income countries, where pharmaceuticals are not always a viable course of treatment.
Any UK company conducting R&D in this sector will need expert support to manage its R&D tax relief claims to ensure that this work is sufficiently funded and can be successful.
How can R&D tax relief help fund medical research?
Medical research is unique in that payments made to clinical trial volunteers can also be included in R&D tax relief claims and other industries do not have a comparable expense.
This can be useful for managing the costs of testing as paying clinical trial volunteers is more likely to result in a greater sample size.
In cases where treatment programmes are being specifically tailored to different countries, it may be necessary to conduct some R&D in that country.
For example, a novel machine designed to detect tumours may need to be tested in the exact environmental conditions where it will be deployed and these conditions may not be easily replicable in a lab.
Where it is vital to the R&D that the work is conducted in another country, it can be included as part of the R&D tax relief claims, provided this necessity can be proven.
For innovative businesses and the accountants that support them, lessons can be learned from the way that medical research in the UK is changing.
While pharmaceutical companies may be retreating to America, other medical research could flourish if the opportunity is seized.
Other businesses in other sectors should take note and be mindful of global needs for innovation when embarking on R&D.
There are many problems that need to be solved in the world and we want to help support the teams that are working to resolve them.
We work to submit fully compliant, maximised R&D tax relief claims to help fund innovation in the UK.
