Sports clubs and athletics businesses often overlook the potential of Research and Development (R&D) tax relief.
However, numerous activities to enhance player performance may qualify as R&D and enable organisations to access R&D tax credits.
Scientific endeavours like nutrition, injury prevention, and fitness enhancements that advance player performance could qualify for tax relief.
What sort of activity may qualify for R&D Tax relief in the sports industry
There are three core eligibility criteria for R&D Tax relief:
- An advance in science and/or technology must be sought in an overall field, not just for your business.
- There must be scientific or technological uncertainty – an expert cannot say if something is technologically possible.
- You must be able to explain the work you did to overcome the uncertainty.
Some examples of sporting projects that may qualify for R&D Tax relief:
Nutrition:
- Studying the effects on fatigue perception, performance, muscle damage, and immunity.
- Impact of food, drink, and vitamin supplements on body composition.
- Tailoring diet and hydration to each player to enhance performance.
Fitness:
- Using physiology and training methods to boost speed, stamina, and recovery.
- Techniques to reduce muscle metabolites and pH levels and increase oxygen uptake without performance loss.
Injury prevention:
- Preventing injuries without compromising performance.
- Focusing on preventing specific injuries, like those to the anterior cruciate ligaments.
- Treating injuries on the field to enable continued play without long-term risk.
Talent identification:
- Examining the impact of genetics on performance and the role of systematic training and development.
- Identifying, monitoring, and nurturing talented players.
Sustainability and eco-friendly products
- Development of sports equipment from recycled materials.
- Implementation of more efficient manufacturing processes.
- Establishment of carbon-neutral training facilities.
These illustrative examples give some idea of areas where investment in R&D may be eligible for tax relief, but there may be many more, if they meet the key criteria.
What costs may my R&D sports project be able to claim?
A specialised R&D Tax specialist will be able to identify exactly what relief you may be able to claim, but here are some potential assets you can save on:
- Staff costs
- Agency workers
- Subcontractors
- Software license
- Consumable items
How do I claim R&D Tax relief for my sports company?
Sports companies looking to claim R&D Tax Relief need to submit a detailed report outlining their R&D activities, the technological challenges faced, and how the project aimed to overcome them.
While the process can seem complex, working with an expert in R&D tax claims can simplify the process and help ensure that all eligible activities are captured.
For sports companies in the UK, R&D Tax Relief provides an excellent opportunity to access financial support for innovative projects.
Whether the focus is on developing new products, enhancing technology, or improving athlete performance, R&D is an essential driver of industry growth and success.
If you need guidance on making an R&D Tax claim or want to know what you can claim relief on, contact one of our experts.