The slides includes the universal rules of tax, Research and Development Tax Credit, and how the tax system can help improve efficiency of the UK healthcare system.

1. Tax Essentials For Healthcare
Innovation Businesses
Hannah Xu
Xceptional Consultancy

2. It costs NHS £11bn per year to
treat chronic diseases that caused
by poor lifestyle choices (BBC
2016)
Lacking of physical activity– UK
adults are now 20% less active
now than in the 1960s. It costs the
UK £7.4 bn per year, including
£0.9bn for NHS alone.
Stress (incl healthcare workers) -
One third of the doctors have a
mental health disorder (BMJ
2011). 80% Junior doctors felt
under excessive pressure at work

3. Increase in
NHS funding
through tax
Improve
efficiency and
reduce costs

4. A bit about me
• Certified Tax Accountant
• Author ‘Discover Wealth
Through Tax’
• Founder of Xceptional
Consultancy
• Public Speaker
• Big Win? Black Belt
Taekwondo

5. Content
The Universal Rules of Tax
Intro on Research and Development Tax Credit
Tax trends on health
Health and Wealth Connection
Further resources
Q&A

6. Cash flow Quadrant (by Rich Dad Poor
Dad)
E
Employee
40%
B
Business owners
19%
S
Self-employed
50%
I
Investors
0%

7. What is R&D Tax Credit
SME scheme was introduced in 2000, to encourage
businesses invest in research and development
Advancement in science and technology
From 2014, for every £100 invested in R&D, the
Government gives back £230 as tax relief
If your business is making loss, you can surrender
the loss and get a tax credit from HMRC

8. Research and Development Tax Credit
What counts as R&D
 Developing new product,
services that are involved in
scientific and technology
advancement
 Developing better, faster and
lower costs processes and
systems
What can you claim for
 Employee costs, freelancers
and subcontractors
 Materials, equipment, rent
and rates that are needed for
R&D project
 Software and IT costs

9. Illustration 1- E-Learning Design
Online education tool (faster download under poor
internet connections, lesson builders, etc)
Identified risks/uncertainty and the technologies
has been used to address those uncertainty
Invested £339,261 (enhanced expense is
£405,742)
Business was making a loss of £1,057,112
R&D tax rebate £104,089 (31% of the R&D investment)

10. Illustration 2 – Software
Accounting software for GPs
Development, sent to the
outsider developer for the
functionality they want but in
general the developers are
very competent, and can
complete whatever tech they
want
There’s no technological
advancement within the
project

11. How to claim
Assess R&D
qualifying
activities
Calculate R&D
qualifying
expenditures
Evaluate the tax
relief and submit
Corporation Tax
Return

12. Tax trends in health
Cycle to work scheme
On-site gym facilities tax free
Tax levy on sugar, tobacco
and alcohol

13. Health and Wealth Connection
Our current healthcare system is more of a disease care system
Your health is not your doctor’s responsibility, Caring for your health is your
responsibility.
Taking care of yourself is not a luxury. It’s a necessity of being a contributing
member of society and for creating the life you love
Daily self-care is like investing. The pay-off is long term
The future of healthcare is self-care

14. Further resources
YouTube: Tax Deductible
Lifestyle
Book on Amazon: Discover
Wealth Through Tax
Facebook Group: Tax
Deductible Lifestyle Tribe
Facebook Group: Health is
Wealth Mastermind
Reach out via email:
Hannah@xceptionalconsultancy.co.uk