Right now, food and drink manufacturers can make the most of generous R&D incentives relief. If you’re developing new products, improving existing ones or even enhancing packaging for your food and drinks – you should definitely consider whether you’re receiving the maximum relief available to you from HMRC.
What is R&D in Food and Drink?
The UK government wants to reward and fuel research and development in the food industry. If your business has been focusing on new product development, including improvements to flavours, shelf life and nutrition, it’s likely that you’ll qualify for R&D incentives relief.
With so much news in the press about increased obesity rates and changes in legislation to sugar content, now is a great time to receive cash incentives to make improvements to your existing product range.
Further developments may also be eligible for the tax relief, including process improvements to achieve cost efficiencies, quality consistency and enhanced food safety to name a few.
Why is research and development important in the Food and Drink industry
We speak to so many businesses that don’t feel like they qualify for relief. They think they’re “simply doing their day job”. We think the name ‘Research & Development’ is misleading. It makes people think of lab coats, test tubes, innovation centres.
In reality, R&D pretty much comes down to one of two qualifying criteria: 1) you’ve made some changes/improvements to your product or manufacturing process; and 2) these changes weren’t obvious or easy and you didn’t know exactly how to make them work from the off.
So, have you ever improved a product? Have you developed one further? Changing ingredients to improve the nutrition of a product could qualify too. And if you’ve made improvements and could quite easily say, “those changes took some thought, some time and some testing,” it’s time for us to talk.
R&D incentives reliefs can get you up to 33p per £1 of qualifying expenditure. And because members of our team specialise in preparing R&D incentives claims for the food and drink industry, we know exactly where to look and what to look for to maximise your claim when we visit your business. That’s how we’ve uplifted dozens of claims done by other accountants and generated £20m for Midlands businesses since August 2017.