As seen with the recent COVID-19 pandemic, being able to rapidly produce medicines, equipment and vaccinations on a vast scale is critical. To achieve this, companies need to be able to think on their feet, innovate and adapt, allowing them to deliver results quickly and accurately.
If your business is operating in this sector and you’ve recently developed new products or processes, there is a strong chance that you could benefit from a Research and Development (R&D) incentives claim or you could receive more than you’ve already claimed for.
WHAT TYPE OF BUSINESSES QUALIFY?
The development of new drugs is, without a doubt, a high-risk and highly regulated area. Given the complexity and risk surrounding drug development, this specific area of R&D is typically limited to large pharmaceutical companies.
Many smaller companies within the pharmaceutical supply chain are important to the delivery of drugs and medicines. These often innovative companies are constantly making advances in manufacturing and packaging as well as the methods of testing or even physically administering drugs.
These activities are often eligible for R&D incentives relief and can provide much-needed funds to support ongoing development.
WHAT SORT OF PROJECTS QUALIFY?
New production development
The development of new products or improving existing products is likely to qualify for R&D relief, providing there is a level of scientific or technological challenge involved. Qualifying activities could also include developing new methods of administering drugs to improve efficacy, absorption, handling, storage or patient experience.
Companies involved in testing drugs often qualify for R&D relief when developing new methods or improving their existing techniques. In addition to this, testing which is subcontracted to a business by a larger pharmaceutical company may qualify for relief under the large company scheme as it will form part of a broader R&D project. This allows the company carrying out the testing to claim tax relief even if the service is being paid for by an external party.
Where products are being manufactured, the development of new or improved production processes typically qualify for R&D relief particularly where this includes employing new materials or integrating new equipment to improve output, quality or increase automation.
At every stage of the scale up process from developing prototype processes or drug samples through to large scale manufacturing there can be uncertainties to be overcome leading to R&D activities until a solution is found.
ESTIMATE HOW MUCH YOU COULD CLAIM ON R&D TAX INCENTIVES
Have you ever wondered whether you could make a claim for R&D tax incentives? Or, if you’ve already made a claim, maybe you want to find out how it stacks up against your industry peers and expectations? Our R&D Tax Credit Calculator answers those questions and gives you an instant estimate of the benefit available to you.
How can we help?
If you operate a business within the pharmaceutical supply chain and you are improving processes or methodologies, or developing new or improved products, we would love to speak to you.
If your business qualifies as an SME, this can provide up to 33% cash back (based on your expenditure in areas such as salaries and material costs). Larger companies can also benefit under the scheme at a rate of approximately 10%.
Here at Cooper Parry, we have a specialist team which includes chemists, engineers, IT experts and pharmacologists, who are well placed to understand the challenges you face and help you put together a claim.
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