Qualifying R&D activities in the pharmaceutical sector typically include anything that seeks to resolve scientific or technological uncertainties, such as drug discovery, clinical trials, formulation development, and scaling up manufacturing processes. See above for a complete list.

Yes, clinical trials, including Phases I, II, and III, are typically eligible for R&D tax relief. The activities must aim to resolve scientific or technological uncertainty, such as understanding drug efficacy, safety, dosage, or side effects.

Yes, unsuccessful or failed R&D projects can still qualify, as the goal is to resolve uncertainties, even if the project doesn’t achieve the desired outcome. The key is that you are advancing scientific knowledge or capabilities in the process.

Not all regulatory activities qualify for R&D tax relief. However, activities that support regulatory compliance and involve scientific or technological uncertainties, such as developing new manufacturing processes that meet Good Manufacturing Practice (GMP) standards or preparing scientific data for regulatory submissions, can be eligible.

Eligible costs include staff salaries, materials used in R&D activities, software, utilities, and subcontractor costs related to R&D. In clinical trials, the cost of patient recruitment, trial design, and data analysis may also be included.

If you subcontract R&D work to a third party (e.g., a Contract Research Organisation (CRO)), the costs may still qualify for R&D tax relief, although the amount you can claim depends on whether you are an SME or a large company and how the subcontractor is engaged.

Receiving government grants or state aid can affect your eligibility for the SME R&D tax relief scheme. In such cases, the project may need to be claimed under the RDEC scheme, which offers a lower benefit rate.

Yes, you can claim for both in-house R&D activities and externally contracted R&D, provided they are part of qualifying R&D projects. Subcontractor costs can be claimed, but the percentage of costs that are eligible depends on the scheme you are using (SME or RDEC).

You can make a claim for R&D tax relief for up to two financial years after the end of the accounting period in which the R&D expenditure occurred.

To support your R&D tax credit claim, it’s essential to keep documentation that describes the technical challenges you’re addressing and the activities involved in overcoming them. Detailed project reports aren’t strictly necessary; as long as you can provide a clear explanation of your R&D efforts, we can assist with defining eligible costs. Time sheets aren’t always required, but having records that outline who was involved and approximate time allocations can be helpful. Our team will guide you to ensure that all relevant information is captured for a successful claim.

If a pharmaceutical company collaborates with a university, it may still claim R&D tax credits for its share of the qualifying R&D work. The nature of the agreement and whether the company bears the financial risk of the project will affect the claim's eligibility.

For UK R&D tax relief, only R&D activities and associated costs incurred within the UK are eligible. However, costs associated with overseas subcontractors or clinical trials conducted abroad may still qualify, depending on the nature of the work and the tax credit scheme being used.

Yes, as long as this work involves the resolution of technological uncertainty. Software development specifically related to R&D, such as the creation of tools for data analysis, drug discovery, or process automation, can be claimed under R&D tax relief.

If improvements to an existing drug or treatment involve significant scientific or technological challenges - such as increasing efficacy, reducing side effects, or enhancing drug delivery - those activities can qualify for R&D tax credits.

Brexit itself does not directly impact R&D tax credits in the UK, as they are governed by UK law. However, changes to funding programs or regulatory frameworks as a result of Brexit may affect individual companies’ activities or eligibility.

The process for claiming R&D tax credits in the pharmaceutical sector involves first identifying eligible projects. Our team will help gather the necessary cost data, prepare the technical report, and handle the entire submission process. We take care of writing and submitting the report, amending your corporation tax return as needed, and ensuring that all relevant costs are accurately captured for the claim.