R&D Tax Credits for the Agricultural Sector
Many more companies in the Agricultural & Horticultural sector could benefit from funding from R&D Tax Credits
The agricultural and horticultural sectors are continuously evolving, with many companies striving to increase efficiency, reduce wastage and improve new and existing products. This has resulted in many businesses undertaking Research and Development, often not realising that they can claim tax incentives such as R&D Tax Credits to help support their efforts on innovation. Many businesses in this sector are run as sole traders or partnerships, so it is important for these businesses to consider incorporation as a limited company, which will then make them eligible for these valuable Government tax incentives.
How do R&D Tax Credits support the Agricultural Sector?
R&D Tax Credits can be particularly beneficial for SME’s in the agricultural sector, as they can help these companies to finance their R&D activities and compete with larger companies whilst improving competitiveness; leading to increased economic growth, job creation, and cash flow.
What types of Agricultural & Horticultural activities qualify for R&D tax credits?
Examples of the type of projects which are likely to qualify for R&D Tax Credits within the agricultural and farming sector include;
- Development of fertilizers
- Development of new machinery and processes for soil erosion & water retention
- Adaptation to existing machinery
- Waste reduction processes
- Development of new techniques to grow crops to increase quality
- Appreciable improvement of existing processes to increase efficiency and cost effectiveness
- Automated packing systems
- Development of crop protection products to reduce disease and improve pest control
- Adaptation of various growing conditions
- Development of processes to improve product safety
- Work carried out to reduce water pollution and improve farmland biodiversity
What types of expenditure can be included in a R&D Tax Credit claim?
R&D Tax Credits can be predominately claimed on revenue expenditure in the following cost categories:
- Staffing Costs
- Subcontractors
- Externally Provided Workers (EPW’s)
- Consumables
- Software licenses
- Utilities
Why work with Innovation Tax?
As R&D Tax Credit claim specialists, with a highly skilled team that includes technical experts who have worked in the agriculture industry for many years, Innovation Tax is ideally placed to support companies in this sector in efficiently & accurately identifying the full extent of their scheme qualifying activities and eligible costs and submit a robust claim that will stand up to HMRC scrutiny; whilst also ensuring that they are fully benefiting from other Government innovation tax incentives such as the Patent Box, and maximising their Capital Allowance tax relief on commercial property assets.
Client Testimonial
‘Innovation Tax were recommended to us from another business relation and we were surprised to learn that we were eligible to claim R&D Tax Credits for our efforts in innovation and product development. Innovation Tax were very efficient, knowledgeable and thorough in their approach from the very start and we would not hesitate in recommending them to assist other business in this sector to claim these valuable tax benefits’. Marvin Haines, GS Haines & Sons Ltd
HOW CAN WE HELP?
It can be challenging to submit an R&D tax credit claim to HMRC’s exacting standards. At Innovation Tax our team of experienced sector specialists, technical and quality assurance experts and tax professionals will help you identify the full extent of your qualifying activities and expenditure and work with you to ensure the correct information is included in the claim documentation, giving you peace of mind that your claim is robust, maximised and defensible.