According to an article by Global Ag Media, many farmers in the UK are not taking advantage of the R&D tax credit for their innovative work. The agriculture sector makes up less than 0.5% of all UK R&D claims. However, those who do make a claim receive an average refund of £52,000.
Agricultural companies developing innovative new technologies or improving processes, production and quality control will experience increased efficiency and other benefits.
Projects can involve a range of activities including fishing, forestry, crop production, animal production and mixed farming. The project does not need to be successful to qualify. In fact, showing that there were technical challenges is essential to R&D.
To get a better understanding of a qualifying agricultural R&D activity, see our example project here. SMEs can receive a refund of up to 33% of qualifying R&D expenditure. Costs can include staff costs, subcontractors, consumables, externally provided works and utilities.