16TH JANUARY, 2019

What Projects Qualify for R&D Tax Credits in The Medical Industry?

The pharmaceutical industry is one of the biggest areas of research and development activity in the world. Despite this, many companies in the sector are still yet to claim R&D tax credits.

However, since the introduction of the R&D Tax Credits scheme in 2000; there has been a 25% increase between 2014/15 - 2016/17 in the total amount of R&D tax relief claimed by pharmaceutical companies, and these encouraging figures are set to rise.

How do I know if I qualify for R&D tax relief?

To qualify for R&D tax relief, your company must have a project which has sought a technological or scientific advancement in its industry, navigating a degree of difficulty. Tax Relief applies to products, processes, materials, devices and services, so there is plenty in the pharmaceutical industry which qualifies for R&D tax relief.

How does this apply to the pharmaceutical industry?

  • Drug discovery is one of the largest aspects of the pharmaceutical industry where R&D tax credits are claimed. The development of a drug or treatment and its chemical research and further testing is a prime example of R&D in the pharmaceutical industry. Our experience with pharmaceutical companies suggests that most of the qualifying activity for Pharmaceutical R&D tax credits occurs in the clinical trials of Phase 1-3.
  • Devices in the medical field often show evidence of R&D. This includes devices for administering drugs or monitoring patients.
  • Testing Methods that are being developed are equally eligible for R&D tax credits. Although there is a presumption that R&D tax credits only apply to the final product and not to its manufacturing process, the production and associated activity very much qualify. By using technology to improve efficiency or efficacy of a testing method, a company can be entitled to R&D tax credits. 
  • Development and improvement of products, processes or services are often forgotten as aspects of R&D but can yield great results. For example, companies that seek to make a process more efficient, effective or to improve the results of an existing product may qualify for pharmaceutical R&D tax relief. This includes improvements like sterility, speed of process or fitness for market (i.e. a sugar-free drug).

In Summary:

There is plenty of activity in the pharmaceutical and medical industries which qualify for R&D tax relief, from the creation of a new drug to the packaging. Adapting and improving the product or process to be more efficient, cost-effective, sustainable or to yield greater results can all help your company make a claim for R&D tax relief. Although the process may seem daunting, there are plenty of options for help, from your accountant to dedicated experts who identify activity on which you can claim, saving you time and effort. Find out today if you could qualify by emailing us, and we’ll let you know.

Barrie Dowsett, ACMA, GCMA
Author Barrie Dowsett, ACMA, GCMA CEO, Tax Cloud
Latest posts
14TH JUNE, 2019 Is my SME eligible for R&D Tax Credits?
3RD JUNE, 2019 Why Use an R&D Portal Over an R&D Advisor?
24TH MAY, 2019 How SMEs Can Benefit from R&D Tax Credits
14TH MAY, 2019 Charities Benefit Following Tax Cloud's Successful Show at Accountex
25TH APRIL, 2019 Tax Cloud's Most Innovative Companies 2019
12TH APRIL, 2019 Accidental Innovation - Tax Cloud's Top 8
5TH APRIL, 2019 A Practical Guide to R&D Tax Relief at Accountex 2019
27TH MARCH, 2019 What Software Projects Qualify for R&D Tax Credits?
15TH MARCH, 2019 3 Automotive Innovations To Look Out For In 2019
1ST MARCH, 2019 What is Research and Development in Business?
22ND FEBRUARY, 2019 Growth hack: Tap Into R&D tax credits
15TH FEBRUARY, 2019 Beyond R&D Tax Credits - public funding for your innovative start-up
1ST FEBRUARY, 2019 5 Steps To Deliver An Optimised R&D Tax Credit Claim
25TH JANUARY, 2019 Top Tax Cloud FAQs
16TH JANUARY, 2019 What Projects Qualify for R&D Tax Credits in The Medical Industry?
11TH JANUARY, 2019 Accounting practices are generating fee rates of £325/hr
2ND JANUARY, 2019 R&D Tax Credits - It's Not As Difficult As You Think
14TH DECEMBER, 2018 4 Ways To Determine If You Qualify For R&D Tax Credits
26TH NOVEMBER, 2018 What Projects Could Be Eligible For R&D Tax Relief in Manufacturing?
2ND NOVEMBER, 2018 How To Know If Your Business Is Entitled To R&D Tax Credits
25TH OCTOBER, 2018 Why Isn’t The Agricultural Industry Claiming R&D Tax Credits?
10TH OCTOBER, 2018 Is Your Business Eligible For R&D Tax Relief?
3RD OCTOBER, 2018 The Most Common Mistakes People Make With R&D Tax Credits
18TH SEPTEMBER, 2018 #1 R&D Tax Claim Portal ‘Tax Cloud’ launches Xero Integration
14TH SEPTEMBER, 2018 What To Look For In An Online R&D Tax Credits Claim Portal
7TH SEPTEMBER, 2018 5 Ways To Grow Your Accountancy Practice
31ST AUGUST, 2018 Common Pitfalls To Avoid While Claiming R&D Tax Credits
24TH AUGUST, 2018 How Far Back Can I Claim R&D Tax Credits?
17TH AUGUST, 2018 Should I Use a Specialist or My Accountant For My R&D Tax Credits Claim?
27TH JULY, 2018 3 Things To Consider When Making An R&D Tax Credits Claim
13TH JULY, 2018 R&D Tax Credits – Don’t Fall Through The HMRC Trapdoor
25TH JUNE, 2018 Tax Cloud Shortlisted for Innovation of the Year
8TH MAY, 2018 Visit us at Accountex 2018, London eXcel
30TH APRIL, 2018 Benefits of A Self-Service R&D Tax Credit Portal
13TH MARCH, 2018 R&D Tax Credits Platform Tax Cloud Celebrates 100 SME’s Seeking Expert Support
5TH FEBRUARY, 2018 How R&D Tax Credits Can Help Your Startup Grow
29TH JANUARY, 2018 Getting the Best Returns From Your R&D Tax Credits Claim
22ND JANUARY, 2018 Introducing: The Tax Cloud Partner Programme
18TH JANUARY, 2018 What Costs Can You Claim Through R&D Tax Credits?
9TH JANUARY, 2018 Common Misconceptions About R&D Tax Credit Claims
13TH DECEMBER, 2017 Tax Cloud at FinTech Connect Live 2017
5TH DECEMBER, 2017 R&D Tax Credits Made Simple For Small Businesses
4TH DECEMBER, 2017 Innovate UK Launches £50m Innovation Loan Pilot Scheme
3RD DECEMBER, 2017 Video Games Tax Relief Scheme Extended
20TH NOVEMBER, 2017 The 3 Things You Need To Consider When Making An R&D Tax Credits Claim
Popular Tags
Start your Tax Cloud claim now Discover if you qualify and ensure your R&D tax claim is maximised. Get started
Powered by Myriad Logo

Myriad Associates helps businesses maximise tax reliefs and secure R&D grant funds. We specialise in R&D Tax Credits, Video Games Tax Relief, Innovate UK grants, Horizons 2020 grants, and Research and Development Capital Allowance Claims.

  • Submitting R&D tax claims since 2001
  • 100% success rate
  • Over £100m claimed and counting
  • Industry leading specialists
  • In-house technical, costing and tax experts
  • Member of the Research and Development Consultative (RDCC) committee

Meet some of the team behind Tax Cloud

Barrie Dowsett Barrie Dowsett ACMA CGMA Chief Executive Officer
David Farbey David Farbey MA, FISTC, FRSA Technical Consultancy Director
Deborah Chapple Deborah Chapple ATT Corporate Tax Director
Lauren Olson Lauren Olson MA, MISTC Senior Technical Consultant