We have been acting as R&D tax specialists to Raditech for a number of years.
They manufacture products that help hospitals and other healthcare providers to deal with radioactive materials with confidence. There are many regulations regarding the healthcare system and the manufacturing company needed to take all of these into account.
Raditech spent significant time and effort coming up with products that performed better than what was already available on the market. This involved researching materials and how they were finished to establish the best match. The goal at the end of the process was to find a product that reduced the exposure to radiation for hospital staff to zero and this had to go hand in hand with very high standards of infection control. Every time they tried a new finish to the materials, this infection control was monitored and measured.
We were able to help the manufacturing company understand that the work carried out in this was eligible for an R&D tax claim – all of it. The discarded materials and time spent on potential solutions that didn’t work are all part of the claim. The uncertain element of the research means that there will be some applications that don’t end up going into the final product.
It is important for businesses to understand this part of the R&D tax credit system. Projects that don’t produce a final result can also qualify. The manufacturing company had spent sums of money on staffing and materials to test the different possibilities in a structured way. This meant they incurred costs that could be included in the claim.
Raditech took some time to come up with the ideal solution. This was a project that had several stages to it. The research came first, with the business looking at all the possible alternative materials before seeing that the finish was vital. They then engineered solutions for testing before engaging in the manufacturing process.
The eventual solution didn’t fit entirely with the initial aim. The company wanted to be able to offer a solution of 3D printing radiation shields for hospitals and other healthcare providers, but the work carried out by the company enabled them to find a finish that increased protection from radiation and infection. It is this level of research and development into uncertainty that the government is looking to reward with R&D tax credits. The fact that Raditech didn’t fulfil their initial goal wasn’t going to impede them from submitting a claim.
Lumo gathered information and technical data from the engineering and manufacturing team to present to the HMRC in the form of an R&D tax claim. This formed the core of the report that secured a significant sum of money for the business.
Lumo help businesses to develop and grow through R&D tax credits. They are now seen by Raditech as a regular source of income. This is the same with many of our clients, having R&D tax credits as part of their ongoing business plans to fuel further investment in all areas.