What projects qualify for R&D Tax Credits in the medical industry?

The good news is, there’s a huge scope of projects right across the medical industry that could make your company eligible for R&D Tax Credits. In fact, it’s one of the most lucrative.

That’s because the medical industry is one of the biggest areas of research and development activity in the world. But R&D doesn’t come cheap, which is why the R&D Tax Credits scheme exists.

What are R&D Tax Credits?

The R&D Tax Credits scheme offers companies conducting research and development a credit of 25% of qualifying expenditure, reducing a company’s Corporation Tax. Furthermore, it’s offered on top of the standard rate of 12.5%, so in reality as much as €37.50 for every €100 of eligible R&D costs can be claimed back from Revenue.

It is a seriously generous incentive to invest in innovation. But despite this, many companies in the sector are still yet to claim. In our experience the reasons for this are many and varied; some companies wrongly believe their project is too small or won’t qualify, while others are wary of what can certainly be a complex application process.

However, latest statistics show that over €1,131 million was claimed in R&D Tax Credits in 2019-2020 alone with these encouraging figures expected to rise.

How do I know if I qualify for R&D Tax Credits?

Tax credits apply to products, processes, materials, devices and services, so there is plenty in the medical industry which qualifies.

To be eligible for R&D Tax Credits, your company must have a project which, through ‘basic research’, ‘applied research’ or ‘experimental development’, has sought a technological or scientific advancement in its industry. Essentially, the outcome of the project must not have been obvious from the outset, even to the most experienced professionals in the field.

The company must also be based in Ireland or within the European Economic Area.

You can find out more about how to qualify on our R&D Tax Credits page.

How does this apply to the medical industry?

The medical industry encompasses a huge variety of different areas. Pharmacology, as part of ‘basic medicine’, is one of the clearest examples, with everything from new devices to cutting edge cures and treatments all requiring intensive R&D.

In Ireland, drug discovery is one of the largest aspects of the pharmaceutical industry where R&D Tax Credits are claimed. The development of a drug or treatment and its chemical research and further testing is a prime example of R&D in the pharmaceutical industry. This is normally carried out by research companies, universities or large pharma companies. Our experience with this suggests that most of the qualifying activity for pharmaceutical R&D Tax Credits occurs in the clinical trials of Phase 1-3.

Devices in the medical field often show evidence of R&D. This includes devices for administering drugs or monitoring patients.

Testing methods that are being developed, and the designing of experiments, are equally eligible for R&D Tax Credits. Although there is a presumption that R&D Tax Credits only apply to the final product and not to its manufacturing process, the production and associated activity very much qualify. By using technology to improve efficiency or efficacy of a testing method, a company can be entitled to R&D Tax Credits.

Development and improvement of products, processes or services are often forgotten as aspects of R&D but can yield great results. For example, companies that seek to make a process more efficient, effective or to improve the results of an existing product may qualify for pharmaceutical R&D Tax Credits. This includes improvements like sterility, speed of process or fitness for market (i.e. a sugar-free drug).

Get in touch today and see if your company can claim

There is plenty of activity in the Irish pharmaceutical and medical industries which qualify for R&D Tax Credits, from the creation of a new drug to the packaging. Adapting and improving the product or process to be more efficient, cost-effective, sustainable or to yield greater results can all help your company make a claim for R&D Tax Credits.

Unfortunately the process of claiming R&D Tax Credits can be more than a little daunting, even if your company has claimed before. That’s because every R&D project is unique, and understanding exactly which costs you can include in a claim - and which you can’t - is often far from straightforward. This can mean you easily overclaim by accident, which could lead to a Revenue investigation. Alternatively, some companies take the cautious approach and end up underclaiming, which simply means leaving cash behind.

This is where the Myriad Associates team come in. With over a decade of experience in R&D Tax Credits, R&D grants and more, our sole aim is to get your company the innovation funding it deserves.

When you come to us to complete your R&D Tax Credits claim, our experts will firstly sit down with you to understand your company, your R&D project and your costs. We can then confirm for sure that a claim is on the cards, before getting the ball rolling.

Next, our technical specialists will create a fully optimised, watertight claim on your behalf, including an R&D technical report and all your figures. Once complete, we will also submit it to Revenue and, should any questions or queries arise, we’ll answer them too.

It all means you can rest assured that not only will your R&D Tax Credits claim stand the best chance of success, but that the resultant cash can be spent exactly as your company sees fit. And with the costs of running a business forever increasing, it’s a funding injection that’s sure to be hugely welcomed!

Why not contact us online or call +353 1 566 2001 and find out more or start your claim today.