How can R&D Tax Relief impact the Agri-tech sector?

Following the launch of the Government’s Industrial Strategy Paper in 2017, a clear emphasis was laid on Government’s commitment for the UK to be a global leader in high-efficiency agriculture. Innovation within the UK Agri-tech sector is seen as a key catalyst for accelerating UK productivity and profitability for all farmers and growers. 

The Paper further highlights that “the world will need 60 per cent more food by 2050 to allow us to feed 9 billion people”. With unmistakable global demand on the table, how can the UK push forward supply levels to cater for this? 

Many in the Agri-tech sector see the current Brexit debacle as a potential roadblock to future UK productivity and profitability, due to apparent uncertainties of future consumer prices, funding and labour availability. For others, it is seen as an opportunity to exploit new markets and benefit from fundamental changes in regulatory practices.   

What is clear is that investment in UK Agri-tech will be critical to the future success of sector. 

How can R&D Tax Relief help?

The availability of R&D Tax Relief is being actively encouraged by UK Government in order to incentivise UK companies that are seeking to innovate by attempting to advance technology or science. 

The Relief can inject game changing amounts of cash into companies that are eligible to claim, as up to 33p in every £1 spent on qualifying R&D expenditure can be reclaimed. Unlocking the Relief can fast-track UK businesses ability to gain advantage over its competitors, cushion any impacts that may present with Brexit and drive the UK forward as a global leader in innovation. 

There is a common misconception that companies in the Agri-tech sector do not qualify for R&D Tax Relief and that the relief is instead there to target the likes of computer programmers and scientists in white coats juggling test tubes. As a result, the vast majority of Agri-tech businesses are missing out on large amounts of potential funding from Government. 

What Agri-tech activities may qualify?

Examples of qualifying projects could include those which:

•    Increase crop yields through changes in process and growing conditions 
•    Use robotics to replace manual production processes
•    Use big data, AI or machine learning to increase knowledge of soil or growing conditions
•    Develop or exploit new technologies and processes 
•    Use drone technology
•    Further advancements in biotechnology
•    Develop environmentally friendly, reduced plastic packaging 

How can Bishop Fleming help?

We support our clients with Agri-tech sector specific R&D claims.  

We would welcome the opportunity to discuss innovation and investment in your business and can help you assess the potential benefits which might be available to you under the R&D Tax Credit regime.

Watch this short video showcasing our recent work in the Agri-tech sector.