UK manufacturing is an innovative sector, making advances in manufacturing processes and products in response to the ever evolving and increasing market demands.
According to HMRC’s Research and Development Tax Credits Statistics, the total number of claims for R&D tax credits for 2017-18 was 62,095, an increase of 17% from 2016-17.
There are still many manufacturing and engineering businesses not benefitting from the possibility to significantly boost profit margins through R&D Tax Credits.
First introduced in 2000, R&D tax credits are designed as tax relief to encourage innovation and increase spending on R&D activities for companies operating in the UK.
R&D Tax credits allow profitable SMEs to recover up to 43.7% and loss-making SMEs are able to recover up to 33.35% of qualifying R&D expenditure as a cash repayment or Corporation Tax reduction.
Making R&D tax relief a valuable source of funding.
R&D relief isn’t just available to pharmaceutical, technological companies making medical and technical advances, in fact 70% of all R&D tax is currently claimed by the manufacturing sector.
If your company is in the manufacturing or engineering industry and you've recently introduced new or improved products or manufacturing processes, there’s a likely chance that your business could benefit from an R&D Tax Credit claim.
There’s many projects within the manufacturing and engineering sectors that qualify for R&D tax relief.
Many businesses dismiss qualifying projects as a routine day to day task that is already performed by the business.
Examples of qualifying projects include;
A good way to determine if the work undertaken qualifies as R&D tax credits, is whether your project team faced uncertain outcomes at the beginning of the project. If so you may be eligible for a claim.
This uncertainty can apply within any of the following project areas:
Here’s just some of the sectors that claim R&D:
|agriculture||health and safety|
|computing / IT||packaging|
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