Some businesses in the healthcare industry may not realise that Research & Development (R&D) tax relief on medical expenses can apply to them.
However, this is a sector in which a large amount of R&D work takes place, with sizeable costs incurred in the quest to create new products, improve existing ones or develop innovative processes.
Submitting a claim for R&D tax relief could save your client thousands of pounds, enabling them to reinvest funds into further growth, research, and innovation.
Our specialist R&D tax consultants will provide you with everything you need to maximise your client’s claim.
Benefits of R&D tax credits for the medical sector
There are several benefits that can be attained from submitting a claim for tax relief on medical expenses – the most obvious being that you can reduce your Corporation Tax liability or claim a cash refund on your R&D expenditure.
This can open doors to further investment in projects designed to make advancements, developments and innovations in the medical industry – which could be particularly important if funding is limited.
Most crucially of all, the funds saved and reinvested from R&D tax relief could ultimately lead to patients experiencing improved health and lives being saved.
Although claiming R&D tax relief can seem daunting, the benefits far outweigh the difficulties.
We provide expert R&D help for accountants to put together a watertight claims process that will minimise the chances of HMRC enquiries.
What projects could qualify for R&D tax relief?
By their very nature, medical developments originate from scientific research and consequently the practical application of the findings.
Therefore, many of these activities qualify for R&D tax relief.
Examples of qualifying R&D activity in the medical industry include:
- Development of software to sync various healthcare providers and services – an example often found in care homes, primary care trusts and local GP surgeries.
- Creation of new forms of stents for heart surgery.
- Chemical research/lab work to adapt a raw material into a usable sustainable product, e.g. to treat asthma, blood pressure or headaches.
- Improvement of existing drug formulations, potentially to reduce side effects or dosage.
- Designing, developing and testing prototypes.
- Trials to determine the success or failure of R&D projects.
As long as the R&D work has been undertaken to try and make an advancement within the field of science or technology, and that the boundaries of knowledge have been extended in those attempts, the activity is likely to qualify for a medical R&D tax claim.
Even unfinished or abandoned projects could be eligible for R&D tax relief.
randd uk’s R&D tax consultants can help you understand whether a medical project qualifies under the scheme.
How to help my client claim R&D tax relief in the healthcare industry
R&D tax relief provides an excellent opportunity to access financial support for innovative projects.
However, R&D for accountants can be challenging, since most lack the time or specialist knowledge to navigate the complexities of the R&D tax relief scheme.
At randd uk, we have a wealth of experience advising clients in the healthcare industry and have helped recoup thousands of pounds in tax credits.
While the process can seem complex, working with an expert R&D tax consultant can simplify the process and help ensure that all eligible activities are captured.
We’ll help your clients make eligible claims and ensure that you never miss an R&D tax claim deadline.
Whether the focus is on enhancing surgical techniques or improving existing medications, we offer accountants R&D assistance with all aspects of the process, from preparing a robust claim to resolving any challenges from HMRC.
Help your healthcare client claim R&D tax relief by contacting one of our experts today.
