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R&D Tax relief in the sports industry

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Author: Tom Mason

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:

  1. An advance in science and/or technology must be sought in an overall field, not just for your business.
  2. There must be scientific or technological uncertainty – an expert cannot say if something is technologically possible.
  3. 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.