If you’re a food or beverage manufacturer and you’ve recently developed new products, improved existing ones, or even enhanced your packaging –there is a strong chance that you could benefit from a Research and Development (R&D) Tax Credit claim or you could receive more than you’ve already claimed for.
The food and drinks industry never stands still and companies are continually looking to enhance their products. Whether it be ensuring that they keep up with the latest customer trends, deliver foods that taste great, or developing sustainable packaging that keeps food pristine, there is always a project to keep the New Product Development (NPD) teams busy.
Investing in R&D can help you create new products or improve existing ones by looking at ways in which you can claim up to 33.35% cashback on qualifying R&D spend.
R&D TAX CREDITS FOR THE FOOD AND BEVERAGE INDUSTRY EXPLAINED
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 R&D incentives.
WHAT TYPE OF FOOD AND BEVERAGE PROJECTS CAN QUALIFY FOR R&D TAX CREDITS?
A broad range of engineering projects can meet the Government’s R&D definition, for example:
ESTIMATE HOW MUCH YOU COULD CLAIM ON R&D TAX INCENTIVES
Have you ever wondered whether you could make a claim for R&D tax incentives? Or, if you’ve already made a claim, maybe you want to find out how it stacks up against your industry peers and expectations? Our R&D Tax Credit Calculator answers those questions and gives you an instant estimate of the benefit available to you.
WHY IS RESEARCH & DEVELOPMENT IMPORTANT IN THE FOOD & BEVERAGE 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 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 you to consider your eligibility to claim R&D incentives’
Better than our expectations! Cooper Parry put in place half yearly catch ups and processes which ensured that the year-end claim wasn’t hard work. Thanks for making it so easy! – Katie Milner, Proper Snacks
R&D Incentives Senior Manager
If you’re interested in finding out if you could claim these generous R&D tax credits, or if you’d like a second opinion on a claim you’re already making, we’d love to discuss it with you.