Who Can Claim R&D Tax Credits?

Your Guide to Claiming Tax Credits Across Industries

R&D tax credits aren’t limited to laboratories or science-heavy industries. At Lumo, we’ve helped businesses from a wide range of sectors benefit from these incentives. From life sciences to food and drink, if your business is innovating, you could be eligible for substantial tax relief.

Many believe that R&D tax credits are confined to scientific laboratories, but at Lumo, we’ve successfully assisted businesses across diverse sectors in claiming substantial benefits through the R&D tax credit scheme.

Regardless of your industry – be it technology or agriculture – Lumo stands as your dedicated partner in unlocking the full potential of R&D benefits.

Industries That Can Benefit from R&D Tax Credits:

No matter your industry, innovation is happening all around you. Lumo specialises in securing R&D tax credits for businesses across industries like:

R&D Tax For Life Sciences Industry

Life Science is an area that has seen a huge amount of investment over the last few years and that doesn’t show any sign of slowing down. Improvements to healthcare have come on leaps and bounds with the advent of new technology. But all of this investment needs cash behind it to support the future. The government has identified this as one of the key areas the UK leads the world and this is why it is supported with R&D tax credits.

R&D Tax For Food & Drink Industries

For far too long, there has been a perception that you have to be working in a lab, or building a new internet to be able to claim R&D Tax Credits. And that’s simply not the case at all. As highlighted by the tiny percentage of eligible food and drink businesses claiming mentioned above, this is a sector that is missing out in a big, big way.

R&D Tax For Science & Technology Industries

Science and tech are a constantly changing environment. Coming up with new ideas and solutions for your clients is part and parcel of the everyday business. Moreover, delving into the incorporation of ‘day-to-day tasks’ within large companies’ R&D, which qualifies under RDEC, is worthwhile. With numerous local businesses falling into this category, capitalising on this opportunity could yield significant benefits.

R&D Tax For Manufacturing Industry

R&D is something that many manufacturing or engineering companies carry out on a regular basis. Making new products, developing existing ones or changing processes keeps companies in these industries up with the competition. Research and development is the way that helps to fund the future investments.

Other Sectors that can Claim R&D Tax Relief:

1. Technology, Information, and Communication:

• Business transformations embodied in software.
• Lumo highlights the importance of innovation in addressing technical uncertainties with Advancements in technology.
• Expertise in identifying qualifying R&D expenditure. 

2. Professionals and Scientific Research:

• Scientific and engineering firms, centred around R&D, engage in multiple qualifying projects.
• Lumo supports the development and rigorous testing of groundbreaking products, materials, and technologies.
• Understanding the intricate nature of projects, Lumo ensures businesses harness R&D credits to their full potential.

3. Retail:

• Retailers and wholesalers develop solutions to automate, streamline, and enhance operations and supply chains.
• Processes or software designed for stock control, ordering management, and expedited delivery could qualify as R&D expenditure.
• Lumo specialises in identifying eligible R&D activities within the dynamic retail landscape.

4. Administrative and Support Services:

• The rise of online service platforms introduces technical challenges qualifying as R&D expenditure.
• Lumo’s expertise guides companies in building, refining, and evolving platforms to meet client needs and stay competitive.

5. Manufacturing:

• Manufacturers experience the highest average R&D claim value.
• Lumo recognises diverse R&D activities within manufacturing, spanning product development to quality control.
• Acknowledging each incremental challenge and solution contributes to a comprehensive R&D tax claim strategy.

6. Construction:

• Engineering advances in construction, beyond aesthetics, can qualify as R&D.
• Lumo emphasises moments in construction that contribute to R&D activities, ensuring no eligible expenditure is overlooked.

7. Agriculture, Forestry, and Fishing:

• Agriculture benefits from technological advancements, leading to significant process enhancements, production scalability, and enhanced quality control.
• Lumo identifies eligible R&D tax claims arising from the fusion of traditional practices with modern technology.

The Definitions of R&D:

The guidelines on research and development for tax purposes were updated in March 2023. Notably, the definition now includes oil and gas exploration and appraisal.

The clarification on qualifying indirect activities (QIAs) dispels the misconception that they do not attract R&D tax credits.

Changes to R&D Tax Relief from April 1, 2024:

SME R&D tax relief and the Research and Development Expenditure Credit (RDEC) will merge, streamlining the process and expanding eligibility.

Lumo stands ready to guide businesses through these changes, ensuring they continue to maximise their benefits from R&D.

Lumo distinguishes itself through its expert team, well-versed in the intricacies of R&D tax relief, along with Patent Box tax relief. The team at Lumo actually have their own inventions!

Our commitment to providing a competitive edge to businesses is evident in our tailored approach.

Transform Your Business with R&D Tax Credits:

R&D tax credits, as a form of innovation funding, hold wide-reaching benefits. Lumo is passionate about helping businesses unlock the full potential of R&D tax incentives, not only fostering growth but also contributing to positive change on a global scale.

Engage with Lumo for personalised advice and support, aligning with our overarching goal of propelling innovative businesses toward growth.