Page 2 - R&D in Agriculture and Farming INFO PACK- APR23

SPOTLIGHT – R&D IN AGRICULTURE AND FARMING
What are R&D tax credits?
Access to finance can present ongoing challenges for the industry. The R&D Tax Relief scheme actively encourages local farmers and agri-companies to engage in technological innovation that can bring huge benefits to the sector.
Introduced by the UK Government in 2000, the R&D tax relief scheme is designed to encourage innovation and global competitiveness by allowing companies to reclaim some of the money invested in qualifying research and development.
When claiming R&D Tax Credits, businesses can receive either a reduction in their tax bill or cash credits for loss-making companies.
If you have people and costs associated with project activities aimed at advancing what you do, then you could be eligible for R&D tax credits.
R&D in agriculture and farming
Something that may not immediately spring to mind is that the industry has the potential to account for as much R&D that is undertaken in other sectors such as manufacturing and engineering.
There’s a real perception that because you come from a farming background and are not wearing a lab coat that you couldn’t possibly be undertaking R&D. That’s not necessarily true.
Visiativ works with many agri-industry companies, helping them claim valuable tax relief on everyday projects they hadn’t realised could qualify for the R&D tax credit programme.
ONE IMPORTANT THING TO REMEMBER: Tax relief applies to all eligible project costs, whether they were successful or not. The government understands that true innovation can come from many failures so the costs incurred in eligible project failures can qualify for tax relief.
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