Claiming tax relief in agritech with R&D

Claiming tax relief

Paul Crooks of CATAX, an Agri-EPI member, explains how those in the agritech sector can make a claim via the available Research and Development (R&D) tax relief.

“The demands on farmers and the agri-tech sector, driven by requirements for increasing efficiency, minimising or mitigating environmental threats, reducing energy use, waste management etc are significant and are driving an enormous research and development effort within the industry. However, farmers and the agri-tech sector are missing out on hundreds of thousands of Pounds in unclaimed Research and Development (R&D) tax relief.

“We know not enough farmers and agricultural businesses are coming forward because the numbers reaching Catax’s door are dwarfed by those in other industries such as engineering and manufacturing. As one of the UK’s leading specialist tax companies, that finding is meaningful.”

Areas where R&D is most likely to be found in agriculture include:

  • Development and use of new technologies and processes in farming
  • Reductions in the environmental impact of the sector
  • Use of data and the internet of things to aid crop or animal management
  • Robotics and AI
  • Monitoring, satellite imagery and remote sensing
  • Increasing yield
  • Improving labour productivity through robotics and machines
  • Resource management
  • Biotechnology
  • Drone technology
  • Soil management and smart irrigation.

The project doesn’t have to be successful to qualify and claims can be back-dated two years.

Many businesses do not realise that much of what they are doing can be categorised as R&D under the government’s rules, making them eligible for the valuable tax relief that was designed to reward and encourage innovation. The HMRC criteria for genuine R&D is whether an appreciable improvement can be shown, addressing a scientific or technological uncertainty.

“Catax worked with a leading UK equipment manufacturer who wanted to develop their own range of manure spreaders and trailers and the technological uncertainty came about in meeting new mechanical, construction and design parameters to produce a new series of equipment which had increased functionality. Our twelve years of experience in specialist tax relief enabled us to identify and, importantly, maximise the qualifying costs in this innovative project and the tax benefit to the engineering business amounted to £30 000.”

Another client wanted to develop an automatic gas purging system in his potato store and a lot of work was carried out in determining the optimum location and frequency of gas sensors which linked to the automatic purging pump. The total tax saving for this business was over £60 000.

The average tax relief benefit for farmers and agritech businesses we have worked with has amounted to £50,000 – a significant sum which could be reinvested in the business to fuel further innovation and growth. If your business profits from products you hold a patent on, then the Patent Box Tax Relief can also help retain more of those profits in your business.”

Many businesses in receipt of public grants from Innovate etc have been advised that they cannot claim R&D Tax Relief on grant aided projects. This is untrue, although the claim is processed through a different HMRC programme to the normal one available to SME businesses and can amount to a benefit of nearly 10% of the entire R&D project.

As in most disciplines, the results achieved by specialists can differ significantly from that achieved by many generalists and the same principals apply in the field of R&D Tax Relief. Most good R&D tax specialists will work on a commission basis so cost considerations can be dismissed as no fees will apply unless a significant benefit is achieved for your business.

Catax have developed a highly efficient system which maximises your tax benefit but minimises your time involvement while we collect and process the information required.

For more information, visit: www.catax.com.

Unlocking new UK funding for agri-food innovation

Agri-EPI Centre can help

Agri-EPI is seeking to lend its expertise to businesses in the agri-tech space to help them access the UK Government’s £1.25 billion government coronavirus support package.

The Chancellor, Rishi Sunak, announced the new package this week to protect firms driving innovation in the UK. It includes a £500 million investment ‘Future Fund’ for high-growth companies impacted by the crisis, made up of funding from government and the private sector. SMEs focusing on research and development will also benefit from £750 million of grants and loans.

UK funding

Agri-EPI has the expertise to help de-risk both the financial and technical aspects of accessing and utilising grants from the new support package.

Chief Executive Dave Ross explained:

“Agri-EPI works to develop partnerships and provide support to UK businesses seeking to develop, evaluate and market technical and engineering products which support efficiency, profitability and sustainability across the food supply chain. We work closely with academia and science and have a portfolio of publicly-supported facilities and assets which are open for use by our partners.

“With a strong track record of success in supporting businesses of all sizes to successfully access funding and to invest in opportunities, we are primed to offer our expertise to any businesses seeking to access this new UK Government funding and we urge those in the agri-food sector with an interest accessing the funding to contact us so that we can lend our expertise to making it happen.”

Rishi Sunak said the targeted and tailored help would ensure firms in some of the most dynamic sectors of the UK economy – ranging from tech to life sciences – are protected through the crisis so they can continue to develop innovative new products and help power UK growth.

For further details on the new UK funding opportunities, visit the UK Government’s website.

To discuss collaboration with Agri-EPI Centre, please contact Business Development Director, Lisa Williams.

Stay informed

Keep up to date with the latest impact and results of our work, plus, news, innovation and approaches across the sector. Read our latest news and Agri-EPI blogs.

Webinar agri-tech opportunities in Columbia

International collaboration

The diverse opportunities in Colombia available to UK agri-tech companies is the focus of an Agri-EPI Centre webinar on Thursday 23 April.

Agri-EPI’s Director of Business Development Lisa Williams, who will co-host the webinar, was part of a recent trade mission to Colombia, organised by the Prosperity Fund, the Knowledge Transfer Network and the International Centre for Tropical Agriculture (CIAT). During a tour of the country, Lisa witnessed first-hand the many opportunities, particularly those associated with fruit, coffee, livestock and cocoa supply chains.

Lisa said:

“There is so much potential in Colombia for UK agri-tech businesses. At present, there is a significant gap in yield between the smallest and largest producers and technology is needed to help fill the gap.

“It’s clear that the Colombian government and its agri-food sector want to increase food production, but, crucially, they want to achieve this sustainably, meaning technology has a huge role to play in increasing precision and efficiency across all sectors. The various organisations I met are extremely interested in working with UK agri-tech companies so there is a huge opportunity in this diverse country.”

Agri-tech in Colombia

Colombia is the third largest Latin American country by population (49.8m) and the fourth largest by GDP. It had an average economic growth of over 4% between 2001 and 2017 and grew 2.7% in 2018. Ranked third in Latin America and the Caribbean for “ease of doing business” in 2017 by World Bank and the IMF, Colombia has access to 60 countries and more than 1.5 billion consumers through its network of trade agreements. Some of these agreements include the US, Canada, the EU, and South Korea.

Hosting the webinar with Lisa will be representatives from the British Embassy Colombia, Catapult Satellite Applications and Knowledge Transfer Network.

The speakers will provide an overview of findings from the trade mission and how UK agri-tech companies can respond to the needs of the Colombian agri-food supply chain. There will also be information about Colombia’s major trade show, ‘Expo Agrofuturo’, which, coronavirus restrictions allowing, is planned for August this year.

More information and sign up details for the webinar can be found here.

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Keep up to date with the latest impact and results of our work, plus, news, innovation and approaches across the sector. Read our latest news and Agri-EPI blogs.

Agri-tech partners support COVID-19 food security

Cutting-edge crop monitoring solution

A collaboration involving Agri-EPI Centre and leading agri-tech start-up Mantle Labs is offering a cutting-edge crop monitoring solution for UK food security during the coronavirus pandemic.

The recent surge in consumer demand and potential trade disruptions caused by the virus pose a real threat to uninterrupted food supply. To avoid this, retailers, supermarkets, food processors and government departments need to have visibility of what is happening across UK agriculture and be able to quickly monitor food supply chains for forward planning.

Mantle Labs is offering its unique ‘Geobotanics’ platform to retailers and others involved in the supply chain, free-of-charge for a period of three months. The Artificial Intelligence (AI) – based platform mixes imagery from multiple satellites to assess current agricultural conditions and provides early warning of potential supply issues.

The platform works seamlessly even in cloudy conditions to give a clear indication of potential problem hotspots around the country and provide projected crop yields. The Geobotanics platform runs on Amazon Web Services (AWS), which enables Mantle Labs to scale its platform quickly and easily to analyse very large volumes of high resolution crop satellite imagery across large surface areas.

Agri-EPI is supporting Mantle Labs in promoting the technology. Discussions are at an early stage with a key organisation within the agri-food industry.

Jon Pierre, Mantle Labs’ Chief Business Officer, said:

“The information provided by our dashboard can be factored into retailers’ procurement and inventory planning. They can work closely with their supplier farmers to tackle problem spots early, determine if issues can be remedied and therefore provide additional resilience and certainty to supply chains of individual items. Government departments can utilise the platform to flag issues relating to national food security.

Analysis can be farm-level, regional and country level; thereby allowing for constant monitoring and forward planning for a variety of procured produce.”

The Geobotanics platform identifies all standing crops on the ground and indicates crop health for all fields including any anomalies likely to impact the production. The total acreage under cultivation by crop type can be quickly accessed which helps in identifying any shortfall in production at a very early stage.

The platform also identifies fallow land, allowing decisions to be taken to bring this under immediate cultivation to fill the gaps in overall demand.

Dave Ross, Chief Executive of Agri-EPI Centre said:

“Innovation and collaboration are vital to identifying solutions to the issue of potential supply chain disruption and we are doing all we can to support our members, working with Mantle Labs and Amazon Web Services to deliver this offer to retailers and UK Government.”

Those interested in discussing this opportunity with Mantle Labs should in the first instance contact Agri-EPI Centre Project Manager, Freddie Reed.

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Keep up to date with the latest impact and results of our work, plus, news, innovation and approaches across the sector. Read our latest news and Agri-EPI blogs.

Proudly supporting Scotland’s inaugural A3 conference

Animal health, agri-tech and aquaculture

Agri-EPI is proud to be sponsoring a major global conference focused on encouraging innovation, investment and collaboration in animal health and sustainable food production. 

The inauagural A3 Scotland event takes place in Edinburgh between 30 September and 1 October this year. ‘A3’ refers to animal health, agri-tech and aquaculture.  

The theme of the conference is ‘transition to net zero’. It will bring together industry, investors and policymakers from around the world to discuss strategic partnerships and discover the latest R&D. 

A3 Sponsors

The not-for-profit event is being organised by the Roslin Innovation Centre, in partnership with the University of Edinburgh, the University’s Roslin Institute, Midlothian Science Zone, the Scottish Government and Scottish Enterprise. Agri-EPI and its fellow UK agri-tech innovation centre CIEL are amongst the event’s sponsors and are providing input to the programme. 

A3 recognition

With the largest cluster of animal bioscience/aquaculture researchers in Europe, Scotland is already a global player in the ‘A3’ sectorRoslin is an internationally recognised named in the field of life sciences, not least because and is the birthplace of Dolly the Sheep, the first animal to be cloned from an adult cell. 

The conference programme offers two core days (30 Sept. to 01 Oct.) of expert speakers from across the sectors, panel discussions and networking opportunities. Wrapped around this are optional pre-and post-conference tours showcasing some of Scotland’s world class A3 facilities and expertise. 

Agri-EPI Centre’s Chief Executive, Dave Ross said:  

“It is very exciting that the inaugural A3 conference is taking place on the doorstep of our Northern Hub in Edinburgh. This looks set to be a major and influential global event and it is being held in a very apt location given the fact that Scotland, and the Roslin area in particular, are internationally recognised as having strengths in A3, both in the research and commercial environments.

We’re very pleased to be involved and would like to encourage any of our members and partners with an interest in the theme covered by the event to sign up.”

Interested?

For more information and to register for A3 Scotland 2020, the inaugural conference for the Animal Health, Agritech and Aquaculture (AAA) sectors, please visit: bit.ly/A3Scotland.

Stay informed

Keep up to date with the latest impact and results of our work, plus, news, innovation and approaches across the sector. Read our latest news and Agri-EPI blogs.