Client Overview
The company is one of the most prominent UK-based research organisation specialising in food safety, environmental protection, and agricultural innovation, conducting interdisciplinary research in plant and animal health, sustainable agriculture, and environmental chemical safety. Operating in a highly regulated environment, the company conducts advanced research in diagnostic testing and analytical sciences, leading to the development of innovative products and techniques. The company generates annual revenues between£50 million and £100 million, underscoring its substantial presence in the sector. It is a trusted partner to food producers and retailers worldwide, with state-of-the-art facilities that support complex scientific analyses across all areas of its operations.
Problem Statement
Despite engaging in extensive and innovative research across multiple disciplines, the company had limited success with the UK R&D Tax Credits scheme. While they had previously worked with other advisors, the claims submitted did not fully capture the breadth or depth of their eligible activities. Much of their work was assumed to be routine or outside the remit of R&D tax relief. Additionally, the company lacked internal processes to systematically identify, document, and track R&D activities and associated expenditures. With over 2,000 complex scientific projects, the company struggled to evaluate which qualified forR&D tax credits. The high volume of research work, combined with the intricate nature of scientific testing and regulatory compliance, made it difficult to assess the true extent of R&D contributions and costs. Without a structured approach to flag eligible activities, the client missed opportunities to optimise their R&D tax relief claims.
Our Process
Our R&D tax specialists guided the client through the R&D Tax Credits scheme, providing a clear overview of the qualifying criteria, eligible costs, and activities. We worked closely with their domain experts and finance team to conduct a high-level assessment of their vast portfolio of research projects. Given the technical nature of their work in regulated scientific fields, we offered detailed guidance on how it was feasible to claim costs associated with eligible R&D activities carried out during the financial year. Following our support, the client initiated their R&D claim process and successfully submitted claims for two consecutive years with our assistance.
ResearchQX began by conducting a technical workshop with client’s technical leads and finance team to introduce the R&D Tax Credits scheme and explain the eligibility criteria. The session aimed to help client understand the key aspects of the scheme and explore how their diverse projects might qualify, with discussion on potential grey areas and less obvious qualifying work, supported by practical examples.
Following the workshop, we collaborated with client’s teams to gather data on their ongoing projects for a more structured assessment. This process involved reviewing and prioritising projects based on their alignment with the R&D criteria. We then carried out a thorough discussion, focusing on the scientific and technological challenges addressed by the selected projects. The insights from this evaluation were used to prepare client’s R&D claim in full accordance withHMRC guidelines. Projects such as those investigating the environmental behaviour and risk assessment of plant protection products, developing diagnostic tests for quarantine pests and diseases, creating biodiversity assessment tools, exploring botanical bio-synergists to combat pesticide resistance in crop pests were all deemed eligible due to the technological challenges they sought to overcome.
We assisted the client in compiling the necessary technical documentation, including detailed project descriptions, explanations of the scientific challenges encountered, and relevant R&D expenditure records. The claim was submitted to HMRC, and our structured and proactive approach facilitated a smooth review process and timely approval.
Key Metrics
Following our exercises, we have helped identify over £2.3M of qualifying R&D for the client on a year-on-year basis. The client’s team gained a deeper understanding of theR&D Tax Credits scheme and how their projects qualified under HMRC guidelines. The key objective was to assess the scope of their existing R&D activities and implement a more proactive approach to identifying and capturing eligible work across their projects. Given the scale and complexity of their research portfolio, we developed a robust methodology to evaluate over 2,000active projects, allowing the identification of qualifying activities across a wide range of scientific areas. This structured approach helped ensure that eligible innovation was captured, substantiated appropriately, and not overlooked within company’s extensive projects.
Beyond preparing the R&D claim, we supported the company in embedding internal processes to systematically flag and document R&D activities and associated costs. This capability has enabled their teams to track qualifying work in real-time, significantly reducing the administrative burden in future claim cycles and ensuring consistent compliance with HMRC expectations.
Additionally, we provided the client with ongoing guidance on legislative developments within the R&D tax landscape. This insight supported their strategic planning and positioned them to adapt quickly to regulatory changes. The successful outcome of the claims not only delivered a meaningful financial benefit but also strengthened company’s internal processes for long-term R&D management and innovation tracking.
