Agriculture innovation right at the forefront of R&D
With uncertainty over Brexit and its effect on food imports and exports, British farmers have an ever more important role in the development of agricultural R&D.
Our farmers are among the most innovative in the world, constantly experimenting with new techniques and tools to improve the performance of their farm business and boost the UK economy.
Innovation is a vital way to address the challenges currently facing the agricultural and horticultural sectors.
Continuing research and development of new processes will play a key role in helping farmers, growers and businesses to become more productive and environmentally friendly.
Agriculture is just one of many sectors of British business that can claim tax relief for their R&D activity.
HM Revenue & Customs (HMRC) administered Government schemes are designed to boost innovation by supporting businesses who seek to improve or overcome challenges and uncertainties in their products and processes.
Eligible businesses can receive as much as 33 per cent of eligible R&D expenditure back, either as a reduction in their Corporation Tax or as a cash credit.
Projects that count as R&D
The work that qualifies for R&D relief must be part of a specific project to make an advance in science or technology.
The project must relate to your company’s trade – either an existing one, or one that you intend to start up based on the results of the R&D.
To get R&D relief you need to explain how a project:
- Looked for an advance in science and technology
- Had to overcome uncertainty
- Tried to overcome this uncertainty
- Could not be easily worked out by a professional in the field
Your project may research or develop a new process, product or service or improve on an existing one.
The Agri-food sector is increasingly exploiting new science and technology.
According to HMRC, a project to develop a new feed or to grow crops that have substantially increased vitamin content, produce better or more reliable yields, or are more tolerant to weather conditions and resistant to blight, would qualify for R&D tax credit support.
The scientific and technological advance is in resolving the uncertainty in the creation of a new improved strain.
However, work to protect this new strain with plant breeding rights does not qualify as it is regulatory, not scientific or technological activity.
Not every change advances overall knowledge and capability. For example, creating new Vitamin C rich confectionery simply by adding Vitamin C to the ingredients does not qualify.
A competent professional could carry out the process without uncertainty in either combining the ingredients or their reaction in the body when consumed.
Creating an innovative chilled food container that provides a substantially longer shelf life than currently available, would also qualify. The scientific or technological uncertainties to be addressed are in the interactions between the food, gas content and container to keep the food fresh for longer.
For help and advice on R&D tax credits contact a member of our expert team today.