Kirby & Haslam HMRC Importance

The importance of HMRC Compliance for Modern Businesses: Insights from Steven Powley at Kirby & Haslam

As a respected specialist in the field of HMRC compliance and taxation, Steven Powley, Kirby & Haslam’s Commercial Manager, shares his keen understanding of the importance of maintaining HMRC compliances for modern businesses. With years of experience in helping businesses navigate complex tax regulations, he shares his insights into why HMRC compliance is crucial, and why working with experienced and trusted partners like Kirby & Haslam is essential.

This is more than just adhering to legal obligations; compliance can have a significant impact on your company’s financial well-being, reputation, and ability to attract top talent. Non-compliance can result in fines and penalties that can be costly and detrimental to your business’s finances. The failure to meet HMRC requirements can also result in audits, investigations, and legal action, which can consume valuable time and resources. Seeing recent high-profile cases in the media, shows us how it is more crucial than ever to ensure your business is compliant.

Moreover, a company that maintains HMRC compliance demonstrates its commitment to ethical and responsible business practices. This commitment helps build trust and credibility with customers, suppliers, and investors, resulting in more significant opportunities for growth and development.

Maintaining a reputation for integrity and compliance, as Kirby & Haslam do, can also help a company attract and retain top talent. People gravitate towards businesses that are committed to responsible practices, and maintaining compliance with HMRC regulations is a significant part of that.

On the flip side, non-compliance with HMRC regulations can damage a company’s reputation, especially in today’s social media-driven world. Negative publicity resulting from tax evasion, fraud, or other forms of non-compliance can lead to a loss of trust, customers, and revenues.

In summary, HMRC compliance is essential for a modern business. It helps companies meet their legal and ethical obligations, avoid penalties, build trust and credibility, enhance their reputation, and avoid reputational damage. It’s crucial to work with experienced trusted partners like Kirby & Haslam, who have a successful history of engagement with HMRC compliance. By maintaining compliance with HMRC regulations, you’re protecting your business’s financial well-being, reputation, and ability to attract top talent. If you would like to learn more about this level of protection, get in touch with us today!

Kirby & Haslam looking through documents

Staying Ahead of Compliance Changes

In today’s rapidly evolving business landscape, keeping up with the latest changes in compliance is crucial for companies seeking to maximise their Research and Development (R&D) tax credit claims. At Kirby & Haslam, we understand the challenges businesses face in navigating these complex regulations.

To ensure businesses stay compliant with R&D tax credit regulations, it is essential to stay informed about the latest updates. Here are the recent changes you need to know:

Rate Changes and Scope Enhancement 

R&D Tax Credits have undergone significant changes, combining rate adjustments and scope enhancements. Notably, the Research and Development Expenditure Credit (RDEC) rate has increased from 13% to 20%, effective from 1st April 2023. This means businesses can now benefit even more from their qualifying R&D activities.  

Digital Submission Requirements

To streamline the process and improve transparency, all R&D Claims must now be made digitally. This includes providing a breakdown of costs and a narrative describing the R&D. By embracing digital submissions, businesses can enhance efficiency and ensure accuracy in their claims.

Advanced Notification for New Claimants

New claimants are now required to notify HMRC within six months of the end of the relevant claim period. This proactive step helps facilitate smoother communication with HMRC and ensures compliance with regulations.

Expanded Inclusions

The latest changes also encompass the inclusion of Cloud Computing costs and pure mathematics from April 2023. This expansion widens the eligibility criteria, allowing businesses from various industries to claim R&D Tax Credits more comprehensively.

Future Merging of R&D and RDEC Schemes

Expect the R&D and RDEC schemes to merge in the future. This integration will simplify the process for businesses and create a more unified approach to R&D Tax Credits.

Staying ahead of compliance changes is crucial for businesses looking to maximise their claims. At Kirby & Haslam, we offer comprehensive compliance services, including report writing, compliance management and review services. Our subscription options provide additional benefits and tailored support to meet your specific requirements. Contact us today to ensure your business remains compliant and unlocks the full potential of R&D Tax Credits.

Kirby & Haslam Diversity and Inclusion

The importance of diversity and inclusion in the workplace

What is diversity and inclusion?

Diversity is the progressive mindset that allows you to understand, accept, and value the differences between people of various ages, gender, race, sexual orientation, ethnicity, religion, disability, knowledge, experience, skillset, and personality.

Inclusion refers to how well a company represents and facilitates diversity.

But why is this so crucial in the workplace?

The primary reason for introducing diversity into the workplace is straightforward. It enables us to develop in a variety of ways and to establish a skilled team capable of running the firm efficiently. In turn, diversity promotes inclusivity, which assists in enhancing innovation as well as accepting and appreciating each employee’s unique background. It promotes a positive, helpful, and respectful work environment in which employees are encouraged to interact and contribute freely!

Diversity also fosters a hunger for new knowledge and perspectives, which leads to increased team decision-making and problem-solving abilities, culminating in unlimited discoveries and breakthroughs. Simply being exposed to diversity may impact and modify people’s brain processes.

What are the additional advantages of having a diverse team?

Having established that diverse teams foster innovation, below are a few examples to demonstrate why diverse and inclusive teams are the new engines of innovation:

  • Teams that are diverse and inclusive generate fantastic ideas. Great ideas are required for company success, and they will not appear out of thin air – only members of your team can come up with brilliant ideas that were not previously explored. This is why, as your teams become more varied in terms of culture, age, sexuality, ethnicity, educational background and skill, and so on, they will seek and take inspiration from seemingly unconnected places. When employees exchange their ideas with a wide set of people, they combine more unique ideas.
  • It’s beneficial to the company culture. Building a team that pushes each other to see the world in new ways leads to growth. Diversity allows people to make their own judgements and own the outcomes of their labour. It can contribute to the development of a culture that values freedom and kindness.
  • Embracing diversity and inclusion will ensure that everyone in your company feels heard and respected, leading to increased sales and leads and a more engaged team.

How to Improve Your Team’s Innovative Potential When You Have a Diverse Team:

  • Seek everyone’s opinions. Innovation in the workplace necessitates the generation of diverse ideas and the selection of the finest one from among them – just incorporating individuals with various points of view in your meetings may provide you with inspiration that you would not have thought of on your own.
  • Be careful of experts. Experts are not the only people who can give you the correct or best response in every case. In today’s environment, every individual on your team may spark your company’s next big idea. As a result, it is ideal if you remain open to such possibilities.
  • Bring out individuals’ real potential. Every individual has a plethora of experiences, interests, and passions that you may leverage to improve your organisation. During a conversation, valuing their perspectives and insights might lead to the creation of something genuinely unlikely and unexpected.

Almost all firms are experiencing or will experience changes as a result of an ever-changing global economy.

Furthermore, with the availability of cutting-edge technology and a rise in commercial competitiveness, innovation and creativity have become critical to success. A diverse and inclusive workplace enables you to release a flood of creative and inventive ideas within your organisation. However, keep in mind that merely assembling a diversified team is not always enough.

Creating a psychological safe haven for each individual in each group is important for bringing out their unique perspective!

See what positions we have available and become a part of our diverse and inclusive team, here at Kirby and Haslam: https://uk.indeed.com/cmp/Kirby-and-Haslam/jobs

Kirby & Haslam Tax Rise Preparations

Prepare now for the challenging corporation tax rise

The ‘growth plan’, set out by the then Chancellor, Kwasi Kwarteng, on the 23rd of September 2022, included a number of substantial tax announcements but two of these have now been reversed. On the 14th of October, the Prime Minister announced a return to the previously planned increase in the corporation tax rate to 25% from April 2023. This followed an earlier announcement of the reversal of the planned abolition of the 45% top rate of income tax from the 6th of April 2023.

However, with these changes also comes changes to R&D Tax Credits, the scope has widened and this means that more businesses can claim this tax relief. This relief will become more valuable, increasing to 32.5% of qualifying expenditure, when the main rate of corporation tax in the UK rises to 25% from 1 April 2023.

With the go-ahead of the increase to corporation tax which had been previously rejected, we take a look at the challenges ahead, and how we can help you prepare. 

What Was Supposed to Happen?

Former Chancellor Rishi Sunak had intended to raise the corporation tax to 25% in April 2023. However, this was rejected by the recently fired Chancellor and effectively froze the rate at 19% allowing companies to retain more profit. The changes were being made in an effort to “support investment, innovation and economic growth.”

What is Happening With Corporation Tax Now?

The pound fell in value dropping to lower than the US dollar and the cost of government borrowing and mortgages also increased. This pressure compelled Liz Truss and her government to reverse the mini-budget in what is being called a ‘U-turn’ on corporation tax.

The government will no longer proceed with the planned cancellation of the corporate tax rate increase. Instead, it will go ahead with the previously planned increase of the rate to 25% in April 2023. The 19% rate will continue to apply to companies with profits of not more than £50,000, with marginal relief for profits up to £250,000 as originally planned.

What Happens Next?

At the time of writing, no additional changes to the tax announcements made during the Fiscal Event were announced, but with the appointment of the new Chancellor, additional changes are possible. According to the Prime Minister, the publication of the Office for Budget Responsibility’s forecast and a new medium-term fiscal plan will occur as planned at the end of October. 

With a 25% corporate tax rate, the UK’s corporate tax regime will remain competitive and supportive of growth. A tax review will be conducted by the government as part of an effort to promote growth and investment through the tax system. 

It’s crucial for businesses to start planning now for these changes – and of course, paying more tax also means you will gain more benefit from any relief available. Find out how we can help reduce your Corporation Tax here!

To Recap:

  • A low tax, high wage, and high growth economy is the Government’s mission, according to the Prime Minister.
  • Corporation Tax rates will increase from 2023, with the new small profit rate benefitting most small businesses.
  • In the Medium-Term Fiscal Plan, which is due to be delivered by the Chancellor on 31st October, Hunt outlines how debt will be reduced over the next three years as a percentage of GDP.
  • In response to concerns over unfunded tax cuts announced by the government in its now infamous mini-budget, the government has raised £18 billion in extra tax revenue through an increase in corporation tax from April 2023. 
  • Research and Development Tax Credits are one of the best ways to reduce your Corporation Tax bill

With the challenges ahead, we are here to make your claim run as smoothly as possible. Kirby and Haslam are experts in writing technical reports for your R&D claim. We will document your claim for you in an R&D Technical report, explaining how your activities qualify for R&D tax relief. The technical report will describe why the project was undertaken, the scientific/technological problem you were looking to solve, and how it meets the legislation – find out more here.

Kirby & Haslam Overseas R&D

Overseas R&D – Will It Affect Your R&D Claims?

Changes to R&D Tax Credits were made in 2022, and they are set to go into effect in April 2023. This makes modifications to both RDEC and SME R&D relief. 

Measures included in the law include broadening the scope of R&D relief to encompass data and cloud computing investment (more on this here), as well as expanding the term to include pure mathematics. Along with this, there are procedures in place to combat misuse and compliance (learn more about this here) as well as resolve any future abnormalities or unintended repercussions. Perhaps the most significant change for firms with an overseas presence is shifting the focus of relief to innovation in the UK.

If these changes affect your business, it is critical that you understand what the changes are, when they will take effect, and what else you may need to consider to ensure you are sufficiently prepared. 

Whats changing with overseas R&D?

The changes create new requirements affecting subcontracted R&D expenditure for externally supplied staff beginning in April 2023. Subcontracted R&D activities must be undertaken within the UK in order to be included in an RDEC or SME R&D tax relief claim, and externally provided staff must be subject to UK PAYE.

There are some circumstances where the overseas activity will be permitted, where the expenditure meets the definition of ‘qualifying overseas expenditure’: 

  • Circumstances where it would be wholly unreasonable to undertake the R&D in the Uk due to geographical, environmental or social factors (e.g. deep ocean research)
  • Or, where legal or regulatory requirements require activity to take place in specific territories (e.g. clinical trials)

These rules will apply to a company’s first accounting period which is behind on or after April 2023.

Read about other R&D changes coming in 2023 here. 

Why are these changes taking place?

The legislation’s goal is to refocus R&D tax relief on UK-based R&D work in order to better stimulate innovation in the UK. The government has said that it wants to maximise the advantage to the UK from the over-spill impact of the relief-incentives R&D effort.

However, the proposed modifications to overseas R&D relief imply business reflection to swing toward employing UK-based suppliers or services, but enterprises who require global talents will be unlikely to be able to do so.

This will be a significant problem for innovative technology firms, particularly those facing worldwide competition for specialised skills. It has the potential to impede the UK’s capacity to participate in global R&D programmes and, over time, to result in a talent outflow away from the UK.

Other changes taking place include: 

  • The categories for qualifying expenditure are changing to include cloud computing and pure mathematics
  • All claims are to be submitted digitally
  • Technical narratives will now be required at the time of submission
  • All claims must be endorsed by a senior member of the company submitting the claim
  • Companies must inform HMRC 6 months in advance of submitting an R&D claim 

Kirby and Haslam – helping you maximise your claim

Kirby and Haslam understand the unique hurdles that UK firms confront while doing R&D overseas. The imminent legislative changes demonstrate that it is more critical than ever to understand how you may be affected and what efforts you can undertake to guarantee you are ready for implementation.

Kirby and Haslam offers numerous services for accountants and R&D firms. We offer bespoke report writing services through our all new subscription based service – with end to end compliant and enquiry support packages to help businesses provide the best possible responses to the revenue. Our commitment is to get our clients the best resolution. 

Kirby & Haslam Corporation Tax Rise

How to approach your R&D claims in light of legislation changes

From April 2023, claims for research and development will need to be more specific, so getting ready and communicating well will be essential. Accountants’ workloads will significantly rise since HMRC is prioritising responsibility and proof in its compliance initiatives, even for those who regularly provide simple background information. 

Beyond the necessary statistics, there is presently no set procedure for making a claim for R&D Tax Credits. Without any supporting documentation outlining what the customer has actually been doing, accountants might submit such numbers on the CT600; nevertheless, professional companies have never worked in this way. They produce reports that detail how the eligible expenses are related to the legislation.

HMRC now plans to go in this approach for all claims beginning in April 2023. Its purpose is to eliminate claims with no foundation and to incentivise claimants to eliminate questionable projects and expenses by requiring more thorough justifications. For the first time, HMRC will want lengthy submissions to support claims. 

Other Changes on R&D Tax Schemes Reforms

  • Data and Cloud Computing will be eligible – read all about this here!
  • Pure Maths will be eligible
  • Overseas work will be excluded
  • Claims will be submitted digitally only
  • Claims must include details of any agents involved in the preparation of the claim
  • A Company Senior Officer must endorse the claim
  • Claimants must notify HMRC of their intention to claim R&D Tax (within 6 months of the end of the Accounting Period) 

How to Approach Your R&D Claims in 2023

Report writing is an art, therefore hiring a professional makes sense! Consider your report as your chance to appease the HMRC inspectors’ diligent team. 

Due to the generous nature of the programme, there can be no shortcuts taken when it comes to R&D tax relief compliance because HMRC has higher standards for applicants than ever before.

Avoid failing from the start by tackling it alone! Despite the temptation, it is really not worth the risk to make an R&D claim without professional assistance. Even one rejected application on the books of your company might lead to a number of later inquiries that are challenging to dismiss. Therefore, the best course of action is to choose an expert with a good reputation, such as Kirby and Haslam.

Given that there is more room for error or misuse when there isn’t clear advice or agreement on interpretation, it is probable that HMRC will pay close attention to these new regulations. We advise getting a professional to help you, Kirby and Haslam have 19 years of experience, and not only this, we have the technical expertise to carry out assessments and write reports that can establish exactly what in your project is claimable making the process as smooth as possible. We deal with R&D claims day in, and day out.

FAQ’s

What is a compliance check?

A compliance check happens when HMRC receive any type of tax claim – they will ask a series of questions. This sometimes happens at random, but it can also be a result of the things that are in your report. 


What is a summary report?

Watch our handy video here to find out what a summary report is!

What services do Kirby and Haslam offer?

Kirby and Haslam offer a few different services for accountants and R&D firms. We offer:

  • Bespoke report writing, with full financial breakdowns
  • Compliance support – supporting yourself and your businesses through any enquiries from HMRC
  • We also pick up enquires mid-service, with our consultancy service
  • We offer end-to-end compliant and enquiry support packages, helping businesses provide the best possible responses to the revenue. Our commitment is to get our clients the best resolution.

Even if the accounts won’t be ready for a few months, you need to be more aware of the prospect of making an R&D claim. Kirby and Haslam can help you stay on track and on top of your claim with our highly trained, accountants.

Kirby & Haslam Cloud Computing

Cloud computing now within the range of R&D expenditure

With its recent announcements on R&D tax relief, the Government has made it clear that it intends to support the technology sector with additional opportunities for those innovating yet not being rewarded for it.

Tech innovators now have a more defined future thanks to this expanded scope. Businesses using artificial intelligence, quantum computing, and pure mathematics faced two obstacles for a long time before they could take advantage of the incentive: first, the exclusion of pure mathematics from the definition of qualifying R&D relief added an additional layer of uncertainty, and second, the significant costs of cloud computing did not qualify for relief either, meaning that firms investing in this type of innovation were not supported for all of their costs.

However, innovation and cloud computing are now more intertwined than ever. After all, there’s no reason an AI innovator should have to pay for the maths or computer power required to create innovative answers. 

Both of these barriers will be removed by April 2023 as a result of the changes stated in the Spring Statement 2022. With this, companies in the IT industry, especially those that use AI, cloud computing, and pure mathematics, may apply for relief with more assurance. Of course, there will be a higher chance of HMRC investigation when there is more money on the table. However, if a company’s work qualifies for R&D tax relief, this shouldn’t prevent them from claiming it – Kirby and Haslam are expert report writers, meaning we have experience in writing reports day in, day out and know exactly what HMRC are looking for. We will also be able to establish exactly what in your project is claimable, making the process as smooth as possible.

What the Changes Mean in Practice

Simply said, when the increased scope is put into force, new opportunities will arise for tech companies. For instance, the addition of pure mathematics signifies that businesses making progress in this area will now be able to seek relief. Additionally, people that depend on datasets to progress technology might anticipate a potential rise in the level of relief that is readily available.

However, the majority of the focus is on the rising expenditure on cloud computing.

The majority of tech-related organisations are aware that cloud computing is not a marginal expense. The sheer power required for developing, running, storing, and maintaining technology can be a significant, inescapable cost of R&D.

While this is still the case, the inclusion of cloud computing within the range of R&D tax relief will have the effect of enabling businesses to begin recovering part of this expenditure, enabling them to place funds to other R&D endeavours or allocate more funding to compute power.

Other updates can be found here.

Optimising Your Claim

When adopting new procedures for your R&D claim, especially if you want to claim a sizeable amount of money, working with a trustworthy accountant will be key. Kirby and Haslam are knowledgeable about the details of the reforms and can offer case-by-case guidance on the best course of action for your company. Get access to our exclusive report writing service here – the reports will support companies’ claims for R&D and shield them from prospective audits. Additionally, they make sure businesses are aware of legislative changes so they may take the necessary precautions to avoid being subjected to an HMRC inquiry or fines.

Optimise your claim with Kirby and Haslam.

Kirby & Haslam R&D renting and leasing

Renting & Leasing: R&D

The renting and leasing sector within the UK is growing across a multitude of subsectors. Due to an increase in goods and services that can be rented in the 21st century, the sector is rife with potential for research and development. There is a rising demand for goods and services that can be rented/leased, caused by several factors. Firstly, the rising costs of specific goods such as mobile phones has resulted in the inability to purchase outright, leading to a demand in the ability to lease the product instead. The renting and leasing of goods also allows greater flexibility for consumers, which can be evidenced within the housing market.

What is the Renting and Leasing sector?

In simple terms, the renting and leasing industry involves the goods and services that are available to rented and leased to consumers. A lease is a contract outlining the terms under which one party agrees to rent an asset—property, for example—owned by another party. Some of the most popular assets that are leased within the UK include:

  • Property
  • Cars
  • Electronics
  • Machinery

An example how large an individual area of the leasing sector is the UK’s car rental & leasing industry, which is projected to be £15.4 billion in 2022. The rise of the internet over the past 20 years has dramatically accelerated the ability for goods to be leased, which is one of significant factors of the industry’s growth.

What is R&D within Renting and Leasing?

The growth of the renting and leasing industry has seen a rising demand for advancement within the sector. With more goods and services available to be leased, there is a necessity for the industry to become more sophisticated and efficient, which can be achieved through innovative R&D projects. Other demands for R&D within leasing arose during the coronavirus pandemic. Common practices within certain markets became disrupted during the various lockdowns in the UK – providing a necessity for innovation to find solutions to these problems. Here are some examples of areas within renting and leasing that have seen innovation:

  • Novel means of digitising the management and maintenance of properties
  • Automation of tenant requests, through algorithms that bypass the need to contact estate agents and experience long wait times
  • Contactless collection of rental vehicles through mobile technology
  • AI technology that helps property owners become paired with prospective rental tenants by analysing tenants credit history
  • Virtualisation of practises such as house tours, increasing accessibility of properties for tenants who are not able to visit in person

How R&D tax credits can help your renting and leasing company

There are many benefits to be gained from the R&D tax credit scheme, however you may be curious about how your own company can be eligible. 

There are many stages throughout an R&D project, which each involve varied activities that may or may not be eligible towards your claim. Some expenditure within  projects that are eligible for tax relief include:

  • Building and testing of prototype models that contribute to the final product, such as test version of software systems
  • Salaries of staff who directly worked on the project, such as technical design staff
  • Any training costs for staff required to work on the project

Whether your company is big or small, the benefits can be significant. The tax credits can help make future R&D projects become more affordable, whilst providing a budget boost to be used in other areas, such as the hiring of staff that can help grow your future.

The next step

Our team at Kirby and Haslam are specialists when it comes to R&D tax relief. If you feel like your company could be eligible for R&D tax credits, then do not hesitate to enquire – our team of experts will help you along every stage in the process. 

Kirby & Haslam R&D innovative recruitment

R&D: Innovative Recruitment

The recruitment industry within the UK has an important role in helping the economy to thrive, which is why innovative recruitment is paramount to the industry. Whether its helping to find new careers for people or helping industries such as construction and retail fill any gaps in their workforce, the industry is vital in keeping the UK population employed and productive. The coronavirus pandemic also brought new challenges to the industry, with millions of people within the country unable to go to work as normal, leading to a higher demand for flexible and temporary working conditions. The importance of the industry was heightened during this period, with businesses developing a greater dependency on innovative recruitment firms to keep them operational.

What is the Recruitment industry?

In basic terms, the recruitment industry is made up of various agencies and in-house professionals that work to match potential employees with available job vacancies. The industry contributed £35.9bn to the UK economy in 2020, despite being a challenging year. The majority of this figure came from temporary/contract placement activity, rather than permanent placements. Moving forward, the industry is expected to grow 7% in 2022, in line with the recovery of other industries post-covid.

What is R&D within Recruitment?

The recruitment industry is one that has considerable potential for research and development (R&D). With the coronavirus pandemic throwing up unforeseeable challenges to the industry, it in turn helped to drive the demand for innovative recruitment that could help the industry become more effective and efficient. Innovation within recruitment has focused on technological based solutions – here are some examples of significant innovations within recruitment that would qualify for R&D tax credits:

  • Automation of the recruitment process, with tasks such as the scheduling of interviews
  • AI software that helps identify potential candidates
  • Technology that allows recruitment processes to be completed remotely
  • Virtual onboarding technology
  • ‘Big Data’ analytics used to find and evaluate potential employees

How R&D tax credits can help Recruitment companies

You may be thinking that R&D activity within your company could be eligible for R&D tax credits, but curious about what activities would qualify and what the benefits of the scheme are.

Varying forms of expenditure that has in some way contributed to the project will be classed as eligible for tax relief. Here are some examples in relation to R&D within retail:

  • Prototypes and their testing, for example the building of an automated onboarding system and subsequent interactions aimed at assessing its capabilities
  • Direct R&D staff costs, such as a head researcher of the R&D project
  • Ancillary activities essential to the undertaking of R&D (e.g., taking on and paying staff, leasing laboratories, and maintaining research and development equipment including computers used for R&D purposes)

Whilst there are obvious financial benefits to be gained from the R&D tax credit system, the implementation of R&D can significantly improve the way a company operates. Increased efficiency, a reduction of costs, and enhancing the customer experience are examples of incentives that can be found when initially planning to go forward with an R&D project.

The financial benefit as mentioned is also significant. In the past, companies have used the tax credits in several ways, such as the hiring of new staff to expand their business, starting a new R&D project, and expanding their business in areas that were previously unaffordable.

The next step

Our team at Kirby and Haslam are specialists when it comes to R&D tax relief. If you feel like your company could be eligible for R&D tax credits, then do not hesitate to enquire – our team of experts will help you along every stage in the process.

Kirby & Haslam R&D Specialised Healthcare

A Guide to Specialised Healthcare R&D

Within the UK healthcare sector are clinics that offer specialised care for different parts of the body, which is why Healthcare R&D is so important for the industry. Some examples of the body parts that have specialised clinics include dental (orthodontics), musculoskeletal (orthopaedics), and skin (dermatology). Since the beginning of the coronavirus pandemic in 2020, there has been a rise in the demand for self-pay health services within the UK. This is due to the backlog that has developed within the NHS, with people forced to look into private health care solutions to solve urgent medical problems.

What is the Specialised Healthcare sector?

The specialised healthcare sector within the UK focuses on the treatment of specific health problems in clinics that are experts in that part of the body. Patients can be either referred to these clinics through the NHS or seek out their expertise in order to get quicker relief for their medical problems. The use of private healthcare clinics has always been prevalent within the UK, however the use of these clinics for relatively simpler surgical procedures has risen in line with the NHS backlog. Specialised healthcare, both public and private, is constantly evolving with scientific and technological advancements helping push the boundaries of health care within the UK.

What is Specialised Healthcare R&D?

Research and development within the specialised healthcare sector are centred around scientific and technological advancements. Advancements within the sector are designed to improve a number of factors that help the operations within healthcare run more efficiently and effectively. Some examples of the significant innovations within the industry include:

  • Development of new drugs used to tackle unique skin conditions in dermatology
  • Advancements within the science of skin grafts, allowing reconstructive surgery to become more sophisticated
  • Breakthrough in hip and knee replacements
  • Developments within anaesthesia, reducing the need for post operation narcotics that have side affects
  • Ability to complete minimally invasive surgery

Whilst the recent innovations within the industry have been hugely beneficial to the standard of specialised care, their remains further scope for R&D. There remains a huge demand for increased innovation, which your company can help to achieve.

How R&D tax credits can help companies within the Specialised Healthcare sector

You may be thinking that R&D activity within your company could be eligible for R&D tax credits, but curious about what activities would qualify and what the benefits of the scheme are.

Varying forms of expenditure that has in some way contributed to the project will be classed as eligible for tax relief. Here are some examples in relation to R&D within retail:

  • Prototypes and their testing, for example the creation and testing of anaesthesia and subsequent interactions aimed at assessing its capabilities
  • Direct R&D staff costs, such as a head researcher of the R&D project
  • Ancillary activities essential to the undertaking of R&D (e.g., taking on and paying staff, leasing laboratories, and maintaining research and development equipment including computers used for R&D purposes)

Whilst there are obvious financial benefits to be gained from the R&D tax credit system, the implementation of R&D can significantly improve the way a company operates. Increased efficiency, a reduction of costs, and enhancing the customer experience are examples of incentives that can be found when initially planning to go forward with an R&D project.

The financial benefit as mentioned is also significant. In the past, companies have used the tax credits in several ways, such as the hiring of new staff to expand their business, starting a new R&D project, and expanding their business in areas that were previously unaffordable.

The next step Our team at Kirby and Haslam are specialists when it comes to R&D tax relief. If you feel like your company could be eligible for R&D tax credits, then do not hesitate to enquire – our team of experts will help you along every stage in the process.