Here at Direct R&D, we recognise the significant enhancement R&D can make to a resident’s quality of life and all of those involved. If you as a business are looking to resolve uncertainties, through creating a unique process that includes rigorous market research and testing, chances are you could be eligible for R&D tax relief again.
The definition for which projects can qualify for R&D is incredibly broad, for a deeper understanding check out our definition here. In the care homes sector, examples of R&D could include hiring software developers, working with a University for research, in-depth research for meal plans or ready meals for residents. Ultimately if your business recognises and identifies a scientifically or technological uncertainty, develops a way to test this and attempts to overcome this uncertainty, then you have a high chance of being eligible to claim R&D tax relief again.
Undertaking in-depth research into meal plans and catering to dietary requirements
Collaborating with universities for research into disabilities that can affect your residents.
Creating bespoke furniture that is specific to the residents to improve their standard of living
Developing software for different internal and external uses for HR or diagnostics purposes.
The rules of R&D are not exclusive to the above list. They are put into place to reward and refund those who are dealing with uncertainty.
The result of your R&D doesn’t have to be a success! Your business can still be eligible for a refund even if the project was unsuccessful!
There are five categories within Agricultural R&D claims that can be claimed back for; subcontractors, staff costs, externally provided works (EPWs), consumables and finally, heat, light and power.
Below, we have detailed how you could include these in your claim.
If you rely on a third party to help with part of the R&D process – this isn’t an issue! You can still use These claims are qualifying expenses for the R&D tax relief scheme.
A large majority of R&D Tax Relief claims involve staff costs, these costs can be encountered for staff who are involved in the R&D project either directly or in-directly.
A direct staff cost that is claimable is the expertise or advice from a competent professional, this is usually someone in a senior position in the industry that has had a direct involvement or effort in the R&D project, or a member of staff that has a defined and technical role that is actively involved in the project.
An indirect staff cost is still valuable in the process of your claim, it covers the ground of members of staff that help to enable R&D by being part of the management process or help to support the R&D taking place.
Externally provided workers (EPWs) are temporary workers on your R&D project, they are often sourced from an external agency who is responsible for their contract. The expenses spent on EPWs are still eligible for part of your claim, in fact you can claim up to 65% of tax credit relief on them no matter how big or small your company is.
A consumable item is any item that is used or transformed whilst in the process of undergoing R&D activity. It includes items such as raw materials, software licenses or even stock used in your project.
The idea is that these items no longer have any use after the project as they are so consumed by the activity undertaken and can be counted as qualifying expenditure.
The utilities that you use during your R&D activity, such as heat, light, power and water are all eligible to claim back with your tax relief claim. You just need to work out the proportion of each of them that was used during the activity.
This can be difficult to work out, however that is where we are here to help you with at Direct R&D using the knowledge and experience of our expertise advisors.