Clinical Research Organisations (CROs) and R&D Tax Credits
Research and development tax credits are one of the most important government initiatives for those business looking to invest in making advancements in the fields of science and technology. As such, Clinical Research Organisations (CROs) will no doubt be interested to the learn about the opportunities to take advantage of R&D tax credits.
Of course, in order to benefit from the scheme, it is first essential that you understand the eligibility criteria and exactly what you are entitled to claim. We take a look at the specifics of if, how, and what your CRO will be able to claim for in relation to the R&D work conducted.
Is my CRO eligible?
What many people don’t realise about R&D tax credits is that the scope of coverage – at least, in terms of those industries with the ability to claim – is almost boundless. In the case of CROs, Stages one to three of clinical trials are typically concerned with the resolution of scientific and technological uncertainty and can therefore be eligible for R&D tax credits. Qualifying activity may include:
- Drug synthesis, biological testing and toxicology studies (Stage 1)
- Exploring how to trial the new chemical substances (Stage 2)
- Exploring how to produce sufficient quantities of the necessary chemicals for clinical trial (Stage 2)
- Carrying out clinical trials on human subjects (Stage 3)
At clinical trial stage, there are four Phases, three of which ordinarily involve some qualifying R&D activity. Phase IV trials often occur once the drug has been licenced, so the resolution of scientific uncertainty tends not to apply.
Some activity is explicitly excluded from R&D tax eligibility, such as brand name research and the production of generic versions of existing drugs that are losing patent protection.
So, what can I claim?
Clinical research organisations that fulfil the requirements highlighted above will be able to make claims on a selection of research and development activities. As is often the case in the pharmaceutical industry, for example, clinical trials are carried out to test the efficacy or viability of a drug. The payment offered to people engaged as subjects in the clinical trial can be claimed for when it comes to submitting the request for R and D tax credits.
In addition, staffing costs, equipment charges, and even selected software licence costs associated with the research and development activity can make up the claim you make to HMRC.
The simplest way to determine whether you’re eligible for the R&D tax credit scheme, or precisely what you can claim for in relation to your applicable projects, is to discuss your situation with experienced R&D tax specialists. The team at R&D Tax Solutions in Manchester will be able to help you throughout the process and provide an estimated chance of success on any claim you make.
Get in touch with the friendly team today on 0161 298 1010 for more details.