Medical R&D Tax Claims & Credits new
Some businesses in the healthcare industry may not realise that R&D tax relief on medical expenses can apply to them.
However, this is a sector in which a large amount of research and development work takes place and consequently sizeable costs will be incurred in the quest to create new products, improve existing ones or develop innovative processes.
Indeed, this is the industry that has the most R&D work undertaken in the UK, with the lion’s share of expenditure going on clinical development and pre-clinical research.
What qualifies as tax relief on medical expenses?
- Development of software to sync various healthcare providers and services – an example often found in care homes, primary care trusts and local GP surgeries
- Development of devices to assist, potentially in surgical or non-surgical application, non-painful injections or 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
Why is the medical sector eligible for tax relief on medical expenses?
By their very nature, medical developments originate from scientific research and consequently the practical application of the findings. Therefore, many of these activities can qualify for tax relief on medical expenses.
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 as research and development for a medical R&D tax claim.
Benefits of submitting medical R&D tax claims
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.
As a result of this, it opens the door to further investment in projects designed to make advancements, developments and innovations in the medical industry. This could be particularly important if funding is limited.
And, most crucially of all, it could ultimately lead to patients experiencing improved health and lives being saved.
How we can help to claim tax relief on medical expenses
If you need any help regarding your medical R&D tax claim, randd is ideally placed for we have accrued a wealth of experience advising clients in the healthcare industry and recouped thousands of pounds in tax. Call us on 01332 409 711 and we will be happy to assist you with understanding whether your R&D work is eligible and how to proceed with a claim.
