Now we’re firmly in the grips of the digital age, and industry relies heavily on technology to maximise productivity, without the latest knowledge, equipment and budget to stay up-to-date with the fast-paced innovations larger businesses can easily invest in, some smaller businesses struggle to grow and keep up. This is what R&D tax relief is for. Not for a select group, but for a whole range of industries. Manufacturing enjoying the largest slice of the R&D tax credits pie, claiming over £770m this year.
Don’t allow the myth around R&D tax credits let your business miss out
There seems to be a bit of a myth around R&D tax credits for manufacturing and some other industries. While it’s true many scientists in white lab coats carrying out pioneering research will benefit from this kind of help, tax credits in manufacturing are what allow hundreds of companies to develop, create and sell products ahead of their competitors. Many of these businesses are SMEs, but they have big ideas. They also know how to get the most out of the tax relief available, often substantial amounts. Besides, the government has launched several initiatives to raise its awareness.
If you need money to research and/or develop (expand and/or exploit new markets), then this is one way to get it. Yet, many business owners don’t take advantage of it, or squeeze it for all it’s worth. Maybe they’re so chuffed they actually qualified and got a decent amount, that it never occurred to them they could have got more. And then there are unforeseen challenges. For example, like changes around health and safety impacting a key part of your manufacturing process, resulting in you needing to adapt equipment to meet new legislation. At least everyone agrees the process is quicker and easier than they anticipated.
How R&D tax credits have benefited businesses like yours
The truth is, being in and staying in business can be hard sometimes. If you do well, then you have to do better or at least keep doing well. But to do really well and become a name in your industry takes many things, including luck, and money to invest in things and people. We all get lucky, it comes and goes. But momentum is what’s needed to keep moving forward, adaptation and innovation to stay ahead.
How’s £144,000 sound?
On average, that’s how much individual businesses in the manufacturing sector have claimed. Developing prototypes, engineering new materials, researching sustainable practices are all examples of where R&D activity can be identified. But due to the nature of what R&D tax relief covers, and its spectrum evolving as our endless creations do, most business owners are happy to hand the task of navigating its territory over to someone who knows the ins and outs. But remember, R&D is not for fast-tracking business owners to the world’s richest list, it’s for research and development. For helping with things like lost batches at trial stage, not profiting from manufacturing and sales.
R&D tax credits for manufacturing
R&D tax credits for manufacturing Doncaster – To find out how we can help with R&D tax relief claims, call 01302 279964 or email firstname.lastname@example.org to speak to one of our chartered accountants in Doncaster.
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