Pharma Accounting
UK pharmaceutical companies benefit from one of the most generous R&D Tax Relief regimes in the world, but claiming correctly requires careful identification of qualifying expenditure. Additional complexities include MHRA regulatory compliance costs, clinical trial accounting, patent box tax relief (reducing Corporation Tax to 10% on qualifying patent income), transfer pricing for international operations, and inventory valuation of drug compounds.
Our pharma accounting services handle R&D Tax Relief claims (both SME and RDEC schemes), Patent Box elections, clinical trial cost capitalisation, MHRA compliance cost tracking, licensing and royalty income management, transfer pricing documentation for HMRC, and Corporation Tax planning. We help UK pharma companies maximise available tax incentives while maintaining full compliance.
What's Included
Comprehensive services tailored to your industry needs
Industry-Specific UK Expertise
Key UK Challenges
Complexities you face
- Identifying and documenting qualifying R&D expenditure — distinguishing research from routine development
- Capitalising clinical trial costs correctly under FRS 102 — when does development expenditure qualify?
- Implementing Patent Box elections and tracking qualifying patent income through the supply chain
- Maintaining transfer pricing documentation for cross-border transactions with related entities
- Managing MHRA regulatory submission costs and determining correct accounting treatment
- Valuing pharmaceutical inventory including raw materials, compounds in development, and finished products
Tax Considerations
HMRC rules & reliefs
- R&D Tax Relief (SME) — enhanced deduction of 186% on qualifying R&D costs, or 10% payable credit
- RDEC — 20% above-the-line credit for large companies or contracted-out R&D
- Patent Box — effective 10% Corporation Tax rate on profits from qualifying patented inventions
- Transfer pricing — HMRC requires arm's length pricing documentation for cross-border transactions
- Capital allowances — laboratory equipment, clean rooms, and specialised machinery qualify for AIA
- Clinical trial tax treatment — costs may be capitalised or expensed depending on stage and certainty
How We Help
Our tailored solutions
- R&D Tax Relief claims with detailed cost schedules and technical narrative preparation
- Patent Box election management and qualifying income stream identification
- Transfer pricing documentation and benchmarking analysis for HMRC compliance
- Clinical trial cost capitalisation assessments under FRS 102 Section 18
- Corporation Tax returns with R&D relief, Patent Box, and capital allowance claims
- MHRA cost tracking and regulatory expenditure management
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