Case Study
Blackman Agriculture

Industry – Agriculture
Number of years claimed – 5
Type of claim – Research and Development (R&D) Tax Credit and The Patent Box

Research and Development Tax Credits case study for Blackman Agriculture

Companies specialising within the agricultural sector are often on the cutting edge of science. Whether by specialising in new technologies and equipment for the cultivation, the processing or harvesting of products, or in the development of new plant varieties or breeds, R&D is taking place.

Blackman Agriculture was established in 2004 and has built a reputation as one of the leading breeders of robust and versatile cereals.

Fiscale have been working with Blackman Agriculture for a number of years, seeing them become literal leaders in their field, while developing high yielding and disease resistant varieties of wheat. This is a time consuming and complex process, with each new strain of cereal taking years to develop.

The team at Fiscale have thoroughly enjoyed getting to grips with the complexity of the research being conducted.

Afterall, it’s only when fully understanding the work being done, that we can identify all the key elements that would be covered in a claim for R&D Tax Credit.

When it comes to plant science, the technical uncertainties must be managed through extensive analysis, testing and field trials.

Fiscale was in no doubt from the outset that Blackman Agriculture would satisfy the criteria set by HMRC for R&D Tax Credit eligibility. However, the challenge would be to articulate each of the uncertainties, along with explaining the impact that the interactions between different plant strains have on new product development. We then need to calculate a monetary value to that process.

The Results

Blackman Agriculture was introduced to Fiscale by their accountant, who acknowledged the specialist nature of the R&D Tax Credit scheme. Fiscale were an obvious choice as they knew that we hold a 100% success record in making successful R&D Tax Credit claims.

Fiscale’s Technical Director, Stephen, uncovered the true complexity of the research and development activities taking place, during their initial meeting.

This was the first client that Stephen had dealt with that was involved in biological research and development. It was a different concept to the commercial and industrial research projects with which Stephen had previously been involved. The level of uncertainty was much higher with so many contributing factors of which there was no control.

Another really interesting element to Blackman Agriculture’s claim is that they’re also eligible for another of HMRC’s “innovation relief” programmes, The Patent Box.

The Patent Box is a hugely beneficial tax regime, which effectively lowers the eligible company’s Corporation Tax liability to only 10%. This is for profits relating to any intellectual property (IP) that they hold. By Blackman Agriculture holding Plant Breeders Rights (PBR) on the new plants that they have bred, they’re eligible to claim under this incentive too. Plant Breeders Rights are essentially patents on new a new varieties of plants that have been bred, discovered or developed by a company or individual.

The Conclusion

The turnaround from the initial contact phone call to the successful submission of the claim was approximately four months.
John was delighted with the amount of the R&D Tax Credit relief received that he could use to offset against future profits.

Without Fiscale, I would never have claimed and received R&D Tax Credit.

John Blackman Managing Director, Blackman Agriculture Ltd.

Call Fiscale Today!

Why not contact us today to discuss your business’ R&D tax relief? It only takes our team around 20 minutes to determine if you are eligible or not.