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In order to support innovative businesses with R&D tax relief claims, it is important to understand the current shifts in research that are taking place throughout the country.
These can often be indicative of the ways that innovation could be sought in the coming months.
A recent Government research brief is signalling a pivot towards an intersection between technology and life science and could form fertile ground for R&D tax relief claims.
How does the government’s research brief impact innovation?
The Government have signalled an interest in seeking technological alternatives to using animals in experiments.
This brief typifies a greater change in societal attitudes towards both the environment and animal rights.
Where once science was renowned for subjecting a range of animals to all manner of experiments, ethics committees have worked to minimise the suffering that animals endure when necessary trials take place.
The Government believes that it may be possible to fully remove the need for animals to be involved in experiments and trials, but only if innovative techniques are sought to replace the vital function they currently play.
It is also hoped that this will mark a move towards more sustainable practices, as a technological solution may have less of an environmental impact than keeping live animals.
However, there is currently uncertainty about whether technology can be a substitute for animals, as animal testing is often the last step before trials can be undertaken on humans.
The Government is not expecting businesses to release mice en masse and replace them with robots, but is hoping the businesses will rise to the challenge and find ways of replicating results in a validated, standardised manner.
Even in instances where animal testing cannot be entirely eradicated, it is hoped that more innovative use of technology will reduce the amount of testing required.
Better systems to analyse data could allow for more results to be extrapolated from fewer test subjects.
Alongside this, some technologies could be used to better predict the outcomes of experiments so that scientists only continue with tests that they believe stand a good chance of success.
How will R&D tax reliefs play a role in reducing animal experiments?
As the field of research is one of particular interest to the UK, it is expected that UK businesses will be the ones to seek a resolution.
This will help position the UK as a powerhouse of technological research and could see the country elevate its presence in the global life sciences community.
As we can expect to see a range of different projects being undertaken, it is worth innovative businesses understanding the key role that R&D tax reliefs play.
It would not hurt an R&D tax relief claim if the rationale behind the project being undertaken was the Government’s own research brief.
This would allow for the existing field of science and technology to be firmly established by an indisputable external source.
Beyond this, the main strength of R&D tax relief claims is the ability to get funding regardless of the success of the project.
This can ensure that innovation is continually sought, even in the face of challenges or if a different solution is found by another innovative company.
There will still be plenty of innovation being sought in other areas of science and technology, but knowing where businesses are likely to be focusing energy can allow accountants to begin having conversations early.
As an R&D tax consultant, we want to support accountants and businesses even if they have not submitted an R&D tax relief claim before.
Help shape the future of research by speaking to our team today!
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