R&D Tax Credits and Farming

R&D tax credits have been around in one form or another for more than 20 years now. Its purpose is to encourage businesses to engage with innovation and create new ways of doing business which HMRC can then benefit from corporation Tax and every other Tax associated in running a business.

Most sophisticated democratic governments have an R&D credit scheme as its regarded as a success in growing number of businesses, creating employment and importantly taxes as a revenue for the state.

To qualify for Tax credits, you must run a Limited company for more than 1 year and have significant costs to be able to claim against. A dairy farm is perfect due to the costs involved and the constant strive to improve efficiency, yet its only recently that agriculture has seen R&D tax credits promoted.

The method to claim is through self assessment and involves producing a tailored report justifying the claim with supporting data and information.

To make a successful claim that is safe requires a deep knowledge of the process and also your farming system. Many R&D tax specialist companies insist they can get you the best, but reality only one or two are set up to claim safely with maximum benefits for the client.

As an example, a 500-cow dairy unit has typically claimed back between £50,000 and £100,000. (This is not a confirmed figure but rather a representation of the possible return.)

If you want to know more about R&D tax credits, please contact David on 07395 498175 or e-mail david@dblbuyinggroup.co.uk and I’ll be happy to pass you on to a reputable and trusted partner.