Research and Development (R&D) is a broad process that encompasses different variations of definitions. Each industry has its own unique approach to R&D. This is what makes the process of it so intriguing albeit a frustrating one to say the least.
By Green Jellyfish’s definition of R&D, it is the process of taking an idea and transforming it into a fully-fledged product or process. Researching, designing, creating and testing are all part of the R&D process. Any project that has to overcome uncertainties to achieve its objective can be classed as an R&D project. For businesses, R&D projects usually aim to create a new product, process, service or improve existing ones. If we were to list every single R&D project possible, the list would be endless.
Research and Development starts with an initial idea. The research part concerns itself with identifying if an idea is feasible. There are two main types of research within R&D, basic research and applied research. Basic research is the first stage of all (and any) R&D project, it is essentially about gaining an understanding of the problem you are trying to overcome. Applied research is the second stage with a more in-depth approach to researching a specific goal to achieve. Once both research stages have been completed, the development stage of the project begins. This is where all the culminated data (sourced from the research) is used to create/improve products or processes. This ranges from testing to trials, and then onto prototyping.
As mentioned before, each industry is different in how they conduct R&D and most industries are completely unaware that they are even undergoing R&D in the first place. It is very easy to instantly assume that R&D only revolves around technology and manufacturing industries. This couldn’t be further from the truth.
An example we have is one of our client’s who is a limited company – owning a handful of care homes across Norfolk. The care sector is renowned for its range of claimable activities. In the case of our client, a few claimable activities they underwent included creating their own furniture, doors and tables as well as making new meals based on their resident’s catered needs. They even had their own bespoke care plans and developed their own system to hold a database of their residents.
The outcome of this claim resulted in our client receiving £33,246 back for their care homes.
Whatever industry your business operates in, whether it’s Care, Agricultural, Food & Drink and Software etc. So, as long as your research and development falls under the broad definition that we at Green Jellyfish have given, then there is every chance you could claim back R&D Tax Credits.
Here at Green Jellyfish, we have a group of dedicated R&D Tax specialists who guide your claim to success with full transparency at every stage.
If you are looking to make an R&D Tax Credit claim for your business (of an industry), the Green Jellyfish team are more than happy to help.
Contact Us at 033 000 20010