R&D Tax Credits in Manufacturing – Daniel James Tax

R&D Tax Credits in Manufacturing

The R&D Tax Credits incentive is intended to inspire innovation and expand expenditure on Research & Development activities for businesses operating in the UK. This is one of the government’s topnotch incentives for inspiring investment in R&D and permits up to 33.35% of a company’s R&D expenditure to be refunded as a cash repayment.

Check if you are eligible for R&D Tax Credits

By answering the questions below we can provide you with personalised online eligibility check.

Step 1 of 6: Your Company Details

Is Your Business a Limited Company?
Research and development tax credits are only available for limited companies registered in the UK.


Why Manufacturing?

Manufacturing is considered as one of the most significant sectors in the UK. In fact, they have contributed 11% of the country’s GVA and have employed over 2.5 million people. Furthermore, manufacturing comprised 70% of R&D spending in the UK, as the sector continually strives for further efficiency and innovation. If you are involved in the manufacturing industry, then we can help you in claiming R&D tax relief, that can help in investing in those crucial research.

Manufacturing companies can likely take advantage of manufacturing R&D tax relief, that can help in covering consumables, sub-contractors, software costs as well as staff costs.

What makes manufacturing companies eligible?

There are a lot of manufacturing companies in the UK which could qualify for R&D tax credits. Manufacturing companies can only be eligible if they met the following conditions:

  • They must have spent some amount of money on these projects.
  • These manufacturers must have conducted research and development into new processes or products.
  • Most of all, they should be a limited company in the UK which is subjected to corporation tax.

What type of projects can be claimed within manufacturing?

The following are some of the potential areas which can have several R&D projects but are not limited too:

  • Textiles and textile products
  • Pulp, paper and paper products
  • Wood and wood products
  • Food, beverage and tobacco products
  • Rubber and plastic products
  • Chemicals, chemical products and man-made fibres
  • Basic metals and fabricated metal products
  • Other non-metallic mineral products
  • Petroleum products and nuclear fuel
  • Transport equipment
  • Other machinery and equipment
  • Publishing and printing
  • Electrical and optical equipment

If you are uncertain if your particular project is eligible, then feel free to contact us to find out. We have an expert team of tax consultants which can help you in identifying if your project is qualified, as well as what scheme should you use in claiming and how much can you possibly receive.

Did you know?

  • The average amount for R&D tax claims in this sector is £144,000.
  • Presently, the annual amount claimed within this sector is £770 million.
  • The manufacturing sector is the sole largest benefactor of the R&D tax credit scheme.
  • Most of the claims that we have seen are intended for Development instead of Research.