25 Nov 2020

R&D Tax Relief for Med-Tech Innovation

Lorna Goodwin
Senior Consultant

The Med-Tech industry is striving to create new technologies that deliver innovative, flexible and efficient diagnostic solutions for healthcare practitioners. It’s one of the largest, growing industries in the UK right now.

Claiming R&D Tax Relief for the development of these technologies can help re-coup a significant proportion of these costs. A recent study found that one in five (21%) innovation active engineering firms (including Med-Tech companies) are not taking advantage of the government’s R&D Tax Credit scheme, potentially missing out on over £10 billion of R&D funding each year.

Developing medical technologies can be a lengthy journey and the time it takes to get a product to market is notably longer than in other industries. This can be due to the large amount of legislation and regulations a med-tech product must adhere to, the clinical trials to prove the technology works, the process of receiving CE marking and getting buy-in from healthcare providers such as the NHS.

Claiming R&D Tax Relief for Med-Tech innovation during the development of your new technology allows you to recoup up to 33% of your eligible research and development expenditure as either Corporation Tax relief or a cash repayment.

The financial benefit of your claim can help fund the next stages of your development and maybe even accelerate the process of getting your product to market!

Eligible Activities

The first step to making your claim for R&D Tax Credit Relief for Med-Tech Innovation is to identify which activities are eligible for the HMRC schemes. Here are a few examples:

  • Prototype development costs
  • Clinical Trials up to Phase III
  • Testing to satisfy regulatory requirements
  • Software development
  • Hardware development and integration of that with software.
  • Improving the efficiency of existing processes
  • Reducing surgical and recovery time
  • Increasing medical analysis capability

The average R&D Tax Credits claim for Med-Tech businesses is £68,000 per annum and the rapid developments within the industry means that claim values can range from thousands to millions.

Next Steps

At TBAT, we’ve helped a wide range of Med-Tech businesses make their R&D Tax Credit claims and have in-house industry experts that fully understand your technology.

Our team will deep-dive into your projects, identify all of the eligible R&D activity and expenditure to ensure you submit a maximised claim to HMRC.

Get your claim started with us by entering a few simple figures with our online R&D Tax Credit Calculator to work out how much your claim could be worth!

Related Articles

12 Jul 2024

First-Tier Tribunal Case Summary– Get Onbord Limited V HMRC

In a big step forward for R&D Tax Credits, HMRC has recently lost a case at the first-tier tribunal against software company Get Onbord Ltd. This decision is a fantastic demonstration of the realities of software development and the use of existing technologies. We have summarised the tribunal case document and highlighted our key takeaways.

R&D Tax Credits
09 Jul 2024

Understanding R&D Tax Relief: Activities and Eligibility in the UK

Explore who can claim R&D Tax in the UK, what activities qualify, and some of the key criteria. Understanding who can claim and what activities qualify for R&D tax can often be quite complex. We shed some light on these aspects, helping businesses navigate the R&D tax relief landscape with greater confidence.

R&D Tax Credits

An independent consultancy, highly skilled and experienced

Assists organisations in accessing research and development grant funding across a range of UK and EU schemes and industry sectors.

Get In Touch