R&D Tax Credits in the Food and Drinks Industry

We all love food and beverages, even more so when there’s something new on the block. Luckily for those of us in the UK, the food and beverage industry is one of the largest (approximately £29bn contributing to the UK economy) so there is a huge investment in research and development to make products taste better, preserve for longer and have better nutritional content. The development process is not limited to just food and drink only, as advancements in manufacturing technology, marketing and even sourcing contribute to R&D activities in the food industry. 

What can I claim tax relief for?

There is a multitude of work done that may qualify for an R&D Tax Credits claim, such as:

  • Creating or developing new flavours or ingredients
  • Enhancing nutritional content
  • Improving taste or texture
  • Making new samples
  • Creating healthier alternatives
  • Developing more sustainable packaging and logistics
  • Thinking up of methods to reduce costs

Unfortunately, despite this list only listing a few of the large number of possible reasons to claim an R&D tax rebate in the food & drink industry, many business owners and individuals are not claiming and are missing out on crucial funding to improve their cash flow. An owner of an SME may want to take particular notice of this.

What types of expenditure qualifies for R&D Tax Credits?

Companies tend to spend a sizeable amount on improving existing/prospective products, refining processes and product lines, as well as additional expenses for packaging, marketing, salaries, ingredients etc. R&D Tax Credits can aid in mitigating these costs by up to 25% and help you continually develop your products further. 

How can I make a claim?

Claiming R&D Tax Credits isn’t easy with many areas of uncertainty. Don’t worry, our team of R&D tax advisors will assist you in constructing high quality, accurate claim that stands up to HMRC interrogation.

As long as a technological or scientific variable is being investigated during your project, usually involving financial risk, R&D Tax Credits are certain to follow. Firstly, we can help you identify all the relevant costs, and to adjust them correctly. We can then put together a detailed, appropriate case, and work on your behalf with HMRC as well.

Why not have a look at our R&D Tax Credits page for more information about how this highly valuable tax incentive could boost your food and beverage company. When you’re ready to make a claim, get in touch with us to get the process started.

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