The HealthTech sector is transforming the way patients and healthcare providers interact. From digital health apps and telemedicine platforms to patient management systems and wearable health trackers, HealthTech companies are changing the future of healthcare. But with this innovation comes complex technical, regulatory, and scientific challenges — and overcoming those challenges could make your business eligible for R&D tax relief.
R&D tax relief rewards companies that push the boundaries of science or technology by attempting to improve products, processes, or systems in ways that aren’t obvious or straightforward. Qualifying work often involves solving technical uncertainties — situations where the outcome isn’t known at the start and requires experimentation, prototyping, and testing to achieve.
At BC&A, we understand the unique challenges faced by HealthTech companies. Through our dedicated medical and healthcare accountancy arm, Kumar Associates, we provide specialist financial and tax support tailored to the healthcare sector.
Here are some examples of activities that could qualify for R&D tax relief in HealthTech:
Developing Patient-Facing Health Applications
Building apps that allow patients to manage their health, access medical records, or communicate with healthcare providers often requires solving challenges around data security, user experience, and system integration.
Creating Telemedicine and Remote Monitoring Solutions
Developing platforms that enable virtual consultations, remote diagnostics, or ongoing patient monitoring involves tackling issues such as real-time video streaming, secure data handling, and device compatibility.
Integrating HealthTech with NHS and Clinical Systems
Overcoming the technical barriers to integrate with NHS infrastructure or other healthcare systems — especially where legacy systems or strict regulatory requirements are involved — is a common area of qualifying R&D.
Advancing Medical Data Privacy and Security
Developing advanced security measures to protect sensitive patient data, ensure regulatory compliance (such as GDPR or HIPAA), and prevent unauthorised access or breaches can qualify as R&D.
Building AI and Machine Learning Health Tools
Using AI to analyse medical data, assist in diagnosis, or provide treatment recommendations requires research, testing, and validation to ensure accuracy, reliability, and clinical safety.
Improving User Experience and Accessibility
Designing platforms that meet the needs of both patients and healthcare professionals — particularly those with accessibility requirements or low digital literacy — often involves technical problem-solving and innovation.
Meeting New Healthcare Regulations and Standards
Engineering HealthTech solutions to comply with evolving regulations such as UKCA marking or medical device software standards may require technical advancements to meet certification requirements.
If your HealthTech business is tackling these or similar challenges, you could be eligible to claim R&D tax relief, helping you recover part of the costs of your innovation and reinvest in improving healthcare delivery.