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Just as it has taken centuries of human ingenuity to improve our own health, animal welfare is subject to a similarly taxing process, hence it being a recognised field of science and technology.
However, in the same way that deciding to eat more vegetables would not make a person a doctor, simple improvements to an animal’s quality of life will not be eligible for R&D tax relief claims.
What needs to be focused on is the truly innovative work done to advance the existing state of knowledge and you must understand the difference in order to file a successful R&D tax relief claim.
What work can be covered in an R&D tax relief claim?
It is important to consider the full spectrum of possibilities that can be considered eligible for an R&D tax relief claim.
Work may be done to develop new medications and vaccinations in order to combat the outbreak of diseases in livestock.
This can be difficult to develop as any pharmaceutical project needs to not only consider the effect on the animal in question, but also the way in which it impacts the end product.
There may be some medications that are safe for animals but toxic for humans, so that would introduce uncertainty on how to develop something effective.
However, there are other ways to improve the health of livestock beyond pharmaceuticals.
Developing new feed formulas can also improve the long term health prospects of an animal.
Beyond just the physical health of livestock, there can be measures developed to ensure the safety and security of the animals themselves.
This may require technological solutions such as developing AI-powered tracking systems to prevent theft or to locate lost animals.
How can work to improve the well-being of livestock be represented in an R&D tax relief claim?
Above all, the most important distinction to draw is the difference between routine improvements and advances in science and technology.
Changing to a different feed or using existing technology to improve existing conditions will not qualify for an R&D tax relief claim.
It has to be a true advance that would not be readily deducible by a competent professional.
A well-crafted technical narrative is vital for showing HMRC that innovation is taking place and for highlighting how you are working to improve the well-being of livestock.
This can allow for bold innovation to be conducted as R&D tax reliefs can provide essential funding for innovative businesses.
Get in touch to find out how you can help support the long-term health prospects of livestock with R&D tax relief claims.
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