Within the latest HMRC statistics on R&D tax credits, we can see that 19.5% of all claims made under the SME scheme, were for companies operating in the “Professional, Scientific & Technical” sector. This accounts for a whopping 26% of the total claims value.
The average claim value is £72,260.
Research and Development Tax Credits within the Health & Wellbeing sector
R&D takes place across all industries and sectors, with the health and wellbeing sector being at the forefront. A raft of scientific and technological uncertainties occur in health and wellbeing, due to the variety and volume of business types within this sector.
Eligibility for R&D tax credits centres around the two key areas of either:
Producing new or improved products.
Design and development of a product involving some degree of uncertainty for which the answers were not obvious.
This sector encompasses a wide range of business types, with each having their own focuses; for example a health club might focus on developing bespoke booking and tracking systems for their patrons, whereas a company who develops nutritional supplements will be focused on food science.
It’s always important to bear in mind what constitutes as research and development. The reason being that many industries are reliant on constant R&D for their companies continued success.
Examples of technological uncertainty in Health & Wellbeing
Creation of new software solutions
In an ideal world there would be a software program that would suit every need that we have, however, this is rarely the case. In the absence of off the shelf solutions, owners of gyms and health clubs will need to develop their own. Unfortunately this process can involve a substantial amount of trial and experimentation, before testing and redesign to achieve the desired outcome. Often the final program will only bear a passing resemblance to the original design. Further R&D will often be needed when being integrated into current systems.
Formulation to meet regulations
When creating new supplements or energy drinks, companies will experience many of the same technological uncertainties as the food & drink sector. On top of this, they will also need to ensure that they adhere to strict guidelines regarding what these products can contain and the claims that they make. Following a successful launch, it’s not uncommon for new regulations to come into force, which will need companies to reformulate a recipe. These resultant changes require a great deal of R&D to recreate the product.
Designing specific workouts for patrons
Many health clubs face their scientific uncertainties when creating specific training programs for their patrons. Because each person’s body is different and will react differently, this means that results will vary. Unlike machinery, people are affected by age, diet, gender and lifestyle, making it impossible to ascertain a specific “universal” result. This scientific uncertainty, with respect to differing body types and lifestyle choices, make it difficult to specifically calculate how to create a fitness program that will enhance the strength or improve the performance or endurance of a particular muscle group or area of the body.
Adapting to new processes and methods
New research and data can result in fitness programs and training methods being completely redeveloped. During this process, programs will go through a process of trial and experimentation, until they meet the desired need. In some cases this in unsuccessful, resulting in the program being removed from the schedule completely.
Testimonials from our Health & Wellbeing clients
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