Agriculture R&D Tax Credits | Wilby Jones

Agricultural businesses often involve developing innovative farming methods, technologies, and environmental solutions to improve productivity across the sector. Here, we explore how R&D applies across the industry and the areas where you’ll find qualifying activity to help you understand if you could be eligible.

What is the Agriculture Sector?

What is Agriculture?

What is Agriculture?

Industries in the Agriculture Sector

Industries in Agriculture

Industries in Agriculture

Example Qualifying Activity

Example Qualifying Activity

Example Qualifying Activity

DSIT Guidelines Within Agriculture

DSIT Guidelines Within Agriculture

DSIT Guidelines Within Agriculture

Managing Enquiries

Managing Enquiries

Managing Enquiries

Industry Whitepapers

Industry Whitepapers

Industry Whitepapers

Related Articles

Related Articles

Related Articles

Understanding R&D Within Agriculture

R&D for tax purposes is different to how most of us would view R&D. If you've tested new approaches, made modifications, or solved technical problems in uncertain territory, there could be value here for you. Difficult doesn’t necessarily mean R&D. What we are looking for are solving problems where there isn’t a ready-made solution. This creates knowledge where it wasn’t easily accessible, and this knowledge gained is R&D for tax purposes.

The purpose of R&D tax relief is to support businesses trying to improve how things are done whether that’s in the field, the shed, or the workshop. This incorporates agri-tech, food & drink, and renewables, though these industries are typically more aware of their eligibility.

agri-1

Arable Trialling new crop varieties for disease resistance or drought tolerance

Food & Drink Production Developing or testing new recipes with technical constraints (e.g. allergen-free, long shelf life)

Livestock Feed or grazing trials to improve health, weight gain, or fertility

Agri-Tech & Systems Using sensors, drones, or software in ways that required technical adaptation

Renewables & Environmental Integrating AD, biomass or solar into farm systems with technical challenges

Soil science and agronomy Studying soil fertility, nutrient management, and sustainable growing systems.

Examples of R&D activity in Agriculture:

Trialling new arable methods
Using new methods or equipment to attempt to improve drainage or soil structure
Experimenting with plant-based proteins
Experimenting with lab-grown ingredients, or biotechnology to develop vegan or allergen-free alternatives to traditional products
Animal Breeding
Developing new breeding methods for resilience or productivity
Agri-Tech
Using sensors, drones, or software in ways that required technical adaptation

Renewables
Integrating AD, biomass or solar into farm systems with technical challenges
Environmental
Developing new carbon capture or soil carbon enhancement techniques on farmland

This is not an exhaustive or definitive list. It should be considered a starting point only. Every project must be evaluated individually based on its unique technical challenges and merits.

Intro Title

SECTION STEPS - TITLE

Description. Lorem ipsum dolor sit amet, consetetur sadipscing elitr, sed diam nonumy eirmod tempor invidunt ut labore et

Step Title

Description. Lorem ipsum dolor sit amet, consetetur sadipscing elitr, sed diam nonumy eirmod tempor invidunt ut labore et

Step Title

Description. Lorem ipsum dolor sit amet, consetetur sadipscing elitr, sed diam nonumy eirmod tempor invidunt ut labore et

Step Title

Description. Lorem ipsum dolor sit amet, consetetur sadipscing elitr, sed diam nonumy eirmod tempor invidunt ut labore et

Step Title

Description. Lorem ipsum dolor sit amet, consetetur sadipscing elitr, sed diam nonumy eirmod tempor invidunt ut labore et

The Claim Process

We understand the complications that can often arise when completing an R&D claim, not to mention the significant amount of time it can consume, diverting your attention from driving your innovation forward. That's why we have streamlined a transparent and hassle-free process that follows a step-by-step approach from start to finish.

Throughout your R&D claim process, we maintain open lines of communication tailored to your preferences. Once we have compiled comprehensive technical and financial reports, we take the responsibility of submitting them and proactively follow up with HMRC, leading the communication on your behalf. Often, our next contact with you brings the exhilarating news of success and positive outcomes.

Step 1
We'll gain your authorisation via our client instruction form/NDA. This will enable us to discuss your R&D activities along with your current tax position. This will enable us to discuss your R&D activities along with your current tax position.
Step 2
We'll analyse the profit & loss (P&L) statement of the business while facilitating your technical call. This step aims to determine whether your case is feasible from both technical and financial perspectives.
Step 3
Once our experts are confident that your case meets the R&D eligibility criteria, we will then gather all the required technical information and financial documentation according to HMRC's standards to support your case.
Step 4
At this stage, we initiate a stringent compliance procedure that we have developed in-house to audit your R&D claim application. We verify whether it meets the defined standards before submitting it to HMRC to ensure a positive outcome.
Step 5
After conducting a comprehensive review of your R&D claim, including all required documentation, the application will be forwarded to HMRC for further processing.
Step 6
Our team maintains continuous contact with HMRC regarding your case. If any queries arise, we address them on your behalf using a highly systematic approach to maximise your outcome while minimising any delays in your repayment.

HOW EFFECTIVE ARE

DSIT Guidelines

The DSIT Guidelines form the foundation for compliance when preparing an R&D claim. In conjunction with the wider scope of HMRC’s guidance in relation to R&D Tax Relief, they set out how to determine whether work qualifies and provide practical examples of how to apply the criteria to evidence R&D within a project. These guidelines should not only underpin the assessment process when compiling a claim but can also be referenced during an enquiry defence if required. By demonstrating to HMRC how a project aligns with the definitions and scenarios outlined, you can clearly evidence that the innovation undertaken qualifies for R&D tax relief. Below are five of the guidelines we most frequently rely on to support qualifying work.

DSIT 3 Software projects aim to advance knowledge or capabilities within the sector, often addressing challenges in system architecture, platform integration, or scalable software design.

DSIT 7 Companies often seek to advance a field of science or technology which can have either tangible consequences, such as improving the security of a system by implementing a segmented software architecture for an existing system; or intangible consequences, such as new knowledge regarding integrations of legacy products or the behaviour of various data structures.

DSIT 9 A project may extend overall knowledge, create a process or device, make an appreciable improvement to an existing process, or duplicate the effect of an existing product, to name a few types of qualifying activity.

DSIT 11 If a particular advance in software engineering has already been made or attempted but details are not readily available, work to achieve such an advance is R&D. For example, where a software company has already developed a process that could more accurately consolidate disparate data sets, but the process is a trade secret, a company seeking to develop a similar process is still considered R&D.

DSIT 21 Overall knowledge or capability can still be advanced in situations where companies are working in the same field independently, work is a trade secret, or where the details are not readily available; even where it is known that a particular advance has already been achieved.

HMRC often reference software development examples throughout its guidance.

Drawing direct comparisons to HMRC’s own examples offers a clear and simple way to evidence compliance in R&D projects, whether relating to a single technical detail or an entire scheme.

The following pages set out examples drawn directly from HMRC’s published guidance, which we reference where relevant within our reports.

pexels-matreding-16124523

A company is conducting R&D in the development of a software service for the commercial banking market in the US. Development requires the company to have a collocated team in the US due to access regulations within the US banking sector. This requires conditions (the presence of US banking systems and regulatory requirements) which are not present in the UK, and which would be wholly unreasonable to replicate.

This condition exists in the US. Therefore, this activity would satisfy CTA09/1138A if undertaken in the US, where the necessary conditions arise. Under the new ‘merged’ R&D scheme, overseas costs that used to be claimable may be blocked from a claim and so it’s important to ensure your work remains compliant in the modern R&D landscape.

CIRD152000, Example 5

In determining the relevance of your R&D work, we firstly assess whether the work advances your field of science of technology, however we then need to consider what makes your work technologically or scientifically uncertain. A technological or scientific uncertainty exists when knowledge of whether something is scientifically possible or technologically feasible, or how to achieve it in practice, is not readily deducible or available by a competent professional working in the field as per S.13 DSIT guidelines.

CIRD81960