R&D Tax Credit Myths for CRO & Bioscience Industries

It’s time for bioscience and CROs to take a closer look at R&D tax credits.

22 September 2017

Laboratory & Pipette

It’s time for bioscience and CROs to take a closer look at R&D tax credits.

Ever discovered something new and exciting after taking a second, closer look? Thought so! That’s why it’s worth taking another look at R&D tax credits and why we’re taking this opportunity to debunk a few of the myths preventing CROs and bioscience companies from cashing in.

The winner takes it all! Not necessarily.
From an R&D tax credits perspective, it really doesn’t matter if someone beat you to a particular breakthrough. Provided the details of how they did it aren’t in the public domain (which, let’s face it, isn’t likely given the sector’s attitude towards IP), you can still claim R&D tax credits if you’re working on a new, improved version of an existing technology. So, yes, being first is nice but it isn’t everything.

An epic fail. Congratulations! 
Far from being a barrier to claiming, a failed project is often a good indicator that R&D is taking place. The “resolution of scientific or technological uncertainty” is a key factor in identifying R&D projects, according to HMRC. Where there’s uncertainty, there’s also a chance of failure. So, no, you might not be winning any industry awards for this particular project, but you might win a significant sum in R&D tax credits, which could help fund your next breakthrough.

Been there, done that, bought the T-shirt. Really?
Don’t assume that because you’re already claiming R&D tax credits, you know all your eligible expenditure. Companies evolve, as does HMRC’s interpretation of the scheme’s guidelines. Only by working alongside R&D tax credit experts like ABGI UK, who monitor every development in the legislation and uncover eligible expenditure clients didn’t even know they had, can you maximise every claim. Remember that T-shirt? You might just need a bigger size.

If it doesn’t happen in the lab, it doesn’t count. It does, you know.
That’s right – you don’t need to have labs full of people in white coats to qualify for the scheme. Whatever contribution you’re making to the biotechnology industry – whether it’s conducting experiments in a laboratory, manufacturing the tools needed for research or working on trials out in the field – there’s a chance it qualifies as R&D.

For a free R&D tax credit consultation and analysis of the potential returns you might expect, contact the ABGI UK team: 0203 984 0321 ||  info@abgi-uk.com