More than 700 life sciences companies call Scotland home, with the industry employing over 37,000 people and turning over in excess of £4.2 billion per year (a figure which is predicted to rise to £8 billion by 2025).
Scotland has been, and continues to be, responsible for some of the greatest innovations in the life sciences industry. As a result, the country has attracted significant investment, with over £300 million being invested in the life sciences industry in the last three years alone, including investments from companies including Johnson Matthey, GSK, ThermoFisher Scientific and Quotient. In order to maintain such levels of investment, it is extremely important to ensure that businesses are encouraged to continue to innovate, and are rewarded for doing so.
The government introduced the R&D tax credit scheme in 2000 for SMEs and in 2002 for large companies, with the aim of fuelling growth by encouraging innovation and rewarding companies for undertaking research and development work.
If your company undertakes research in the life sciences area, from pharmaceuticals to biotechnology to the development of medical devices, you could be eligible for valuable tax credits under the R&D tax credit scheme.
Companies can secure tax benefits in the form of a payable cash credit, a tax rebate, or a deduction that can be used to offset future profits, with loss making companies also eligible for a cash credit. It is also important to note, that even if a research project failed, it is still eligible for the scheme, meaning you can recoup some of the costs that went in to it.
Leyton are the UK’s largest independent expert consultancy in innovation. Our goal is to help companies take advantage of existing tools to boost their ability to stay ahead in a globally competitive market. Our consulting team includes highly qualified tax professionals, scientists, engineers and software specialists. They have expertise across almost all industry sectors and an in depth understanding of the legislation surrounding the scheme. This breadth of knowledge allows us to work seamlessly in all sectors, with an understanding of the specific challenges which are unique to each of them. We will work with you to maximise the value of your claim by identifying all of the relevant qualifying activities and expenditure that can be included under your claim. Our technical specialists will prepare a supporting technical report in justification of the claim, and offer a full and free defence in the unlikely event of any enquiry from HMRC.
With official figures released by the government recently showing that British businesses received £2.9 billion support in the last year, with a particular boost received by small businesses, can you afford to miss out?
By Dr Alison McLintock, R&D Technical Consultant, Leyton