During recent years, awareness and uptake of the R&D Tax Relief Programme has grown as more and more companies realise the importance of innovation and development. As a result, more companies are now claiming R&D tax credits annually. The programme is available if your company is incorporated in the UK.

If you are an incorporated company and are not claiming R&D tax credits at this time, we recommend that you request a 15-minute complementary assessment to determine if your company is eligible. If your company carries out activities to one or more of these four specific industries, it is more likely than not that you may benefit for the R&D Tax Relief programme.

Manufacturing

Manufacturing companies make up the most R&D Tax Credit submissions. It is after all a fast-paced, innovative sector where the creation and upgrade of products, materials and processes is a daily occurrence. If you are claiming R&D Tax Credits, RDP always recommends that you are guided by a provider that can advise on each and every project deemed routine and eligible. Often times when we work with new clients that have claimed before whether internally or by another service provider, we review their most recent claim submission and determine that eligible R&D projects have been missed and as a result, money is being left on the table.

Companies in the manufacturing sector will primarily spend their time and money coming up with new product ideas, creating prototypes, testing and trialling before marketing to the public. These are all activities that, in general, are eligible to claim.

Technology Development

Various technology is continually evolving be it Fintech, Artificial Intelligence and the like. Several start-ups and well-established companies continuously work with and improve technology associated with new applications for software development (e.g., robots, augmented reality, IoT). Any company carrying out and/or experimenting with these activities has a high likelihood of eligibility to claim R&D Tax Credits:

A key thing to remember with software development is that it isn’t the end outcome that HMRC is interested in – it is what the technology or scientific ‘journey of discovery’ was, rather than the finished product. For example, developing a solution that for regulatory purposes generally has a “manual” and is already in widespread use won’t qualify for R&D tax relief. However, if the attempt to develop the solution is taking months and/or years, the amount of time spent on the solution more likely than not indicates an eligible R&D project.

Food and Drink

As one of the top industries that are perfect for R&D tax credits, the food and drink industry is certainly something where some taxpayers do not realize they could be eligible for R&D activities. These companies are performing research and development all the time where the technological advancements and uncertainties are all associated with material/ingredient balance for the right taste, texture and for determining a shelf-life of a product (if applicable).

For example, launching a new flavour of drink might just seem like a day-to-day function of the business, when in fact it’s a key piece of research and development that could well be the basis of a claim.

Engineering

Lastly, one of the top industries that is perfect for R&D tax credits is that of Engineering. Whether it is related to civil, mechanical, chemical, or electrical, there is a high chance that an engineering firm is involved in research and development on a regular basis. Innovative technological and scientific advancement is in the very fabric of companies working in this sector. They spend a significant amount of time and resources in overcoming challenges and uncertainty, making them ideal candidates for R&D Tax Credits.

A few examples of eligible R&D activities in this area are as follows:

● Advancing the state of the art in materials engineering to develop novel material composites to achieve greater strength at a lighter weight;

● Development of new modelling techniques and simulations to improve the accuracy of a given event.

Gaining a cash injection from R&D Tax Credits can be especially important to engineering and science-based firms so they can offset the expense of testing and launching new materials and technologies.

Has your company undertaken any of the activities described? To find out whether or not you are receiving the right service or the R&D Tax Credit in general, get in touch with us here.