Research and Development (“R&D”) sounds like a complex tax relief, only available for scientists and chemists that are pursuing ground-breaking developments. However, this relief is also available for many businesses that are improving existing products, developing new ones or improving processes.
You see, almost every business – so long as it’s not a wholesaler – is probably doing some sort of activity that meets the criteria for claiming the incentives. But sadly, a lot of these businesses are missing out, either in full or in part, by not including everything they can. And with up to 33.35% cashback available, that’s criminal!
What is R&D in manufacturing?
R&D in manufacturing can relate to the development of products or processes. It’s inevitable that many businesses continue to advance their existing product range. And if this advancement involves a level of head-scratching and problem solving to overcome a series of technical difficulties, it’s likely the project will qualify for R&D incentives.
Products do not have to be unique to qualify
R&D incentives can be applied to any business that designs or makes something… anything! The thing you’re making could even be being made elsewhere too.
It’s likely you’re not using the same materials or following the same standards as your competitors. You might be light-weighting, working in different space constraints and so on. There are so many things that differentiate your product or the processes you use to put it together.
Why is research and development important in manufacturing industries?
We speak to hundreds of businesses that think they don’t qualify for the relief. Which makes the eureka moment all the more sweet.
That’s because R&D boils down to one of two qualifying criteria. And they’re a lot simpler than you’d think.
Firstly, have you made a change or an improvement to a product or your manufacturing process? And secondly, did those changes take some time, some thought or some testing?
If you can answer “yes” to either of those questions, it’s time for us to have a chat.