R&D Tax Credits for
Manufacturing activity and R&D Tax Relief.
Research and development is all about seeking advances, overcoming challenges and resolving uncertainty. Within manufacturing, these are all frequent occurrences - whether its supply chain issues, new regulations, and so on.
Qualifying manufacturing expenditure for R&D Tax Credits.
Development, testing and trialling of new products.
Digitalising processes that were previously manual.
Innovating environmentally-friendly packaging.
Modifying existing manufacturing processes to adhere to changing regulations.
Crafting specialised tools to meet high-specification product designs.
Making mechanical or digital modifications to production lines.
R&D Tax Credits, explained.
What are R&D Tax Credits?
The Government implemented the Research and Development Tax Credits (R&D Tax Credits) Scheme to help fuel innovation in the UK, by rewarding companies bringing new products, processes or services to market.
How do R and D Tax Credits work?
Companies that spend money developing new products, processes or services - or enhancing existing ones - are eligible to claim R&D Tax Credits. If you're spending money on innovation, you can file for R&D tax relief and receive it either a cash payment or a Corporation Tax reduction from HMRC.
Is my manufacturing business eligible for R&D tax relief?
To make an R&D Tax Credit claim, you must meet the following criteria:
Be a UK limited company that is subject to Corporation Tax
Have carried out qualifying research and development activities
Have spent money on these activities
Our end-to-end R&D Tax Credits Service.
The HMRC-recommended approach to R&D Tax Credits.
Fixed Fee, no upfront costs.
We take the stress away from claiming R and D Tax Credits. Our specialists complete both the Financial and Technical reports and submit your R & D claim to HMRC so you don't have to.
We're so confident in our end-to-end R&D Tax Credits service that our fixed fee is charged only upon success.
R & D Claim completion within 3-5 working days
End-to-end R&D Tax Credits service
Financial & Technical Report completion
Dedicated Account Manager & R&D Tax Specialist
100% Success Rate
Full HMRC Enquiry Support at no extra cost
Trusted by manufacturing companies.
FAQs: Manufacturing R&D Tax Credits.
How much can manufacturing companies claim through R&D Tax Credits?
R&D Tax Credits allow profit-making companies to reclaim a tax benefit of up to 21.5% of qualifying R&D expenditure. But if you're loss-making, you're entitled to reclaim up to 27% of qualifying R&D costs - as cash!
Can my company claim R&D Tax Relief if the manufacturing project is unfinished?
Of course! Manufacturing has a lengthy timeline. Businesses can claim R and D Tax Relief throughout the entire process, from start to finish. From the first year that you incur R&D spending, you can claim R and D Tax Credits.
Can I claim R&D tax relief on manufacturing subcontractors?
Yes! Costs for consultants and contractors anywhere in the world can be claimed.* Under the SME R&D Tax Credits scheme, you can reclaim 65% of the costs paid to any unconnected subcontractor working on eligible manufacturing projects.
*As of April 2024, you can only claim subcontractor costs from manufacturing occurring within the UK.
Can travel expenses be included in my R & D Tax Credit claim?
In some cases, travel expenses (i.e - flights and hotels) can be claimed within your R&D tax credits. However, for these costs to be included in the R & D claim, employees must have paid for them as an out-of-pocket expense on their personal card and received reimbursement by the company.
Which areas of my manufacturing spend can be included in my R & D claim?
Research and development tax credits (R&D Tax Credits) allow you to claim expenditure related to staff costs, subcontractors and consultants, hardware, software, and consumables.
What is Claim Capital's success rate with R&D Tax Credits?
We operate 100% success record across all sectors, including manufacturing. Our R & D claim sizes currently vary between £10,000 and £1.2m.