For those working within the Manufacturing industry, it is well known that this is a challenging sector that often requires innovative solutions. As R&D activities go hand in hand with innovation, there is a clear link between R&D and Manufacturing. R&D tax credits for the Manufacturing industry are a great way to mitigate any losses when undertaking these innovative and inventive solutions. There are a wide range of Manufacturing projects that can qualify for R&D tax relief - so many companies are working with new or improved materials and new processes and techniques. The following highlights some of those projects.
Manufacturing projects that may qualify for R&D tax relief include:
- Design and development of tooling and equipment;
- Use of new materials to improve manufacturing;
- Increasing supply chain efficiencies;
- Design and development of innovative manufacturing equipment,
- Improving efficiencies to meet regulatory requirements and increase overallperformance.
- Methods to reduce environmental impact through the use of alternativeprocesses or materials
- Waste reduction through machinery or process innovation
What activities can be included in a R&D project?
- Overcoming challenges and uncertainties;
- Designing and making products;
- Suggesting a more cost-effective process;
- Suggesting a more time-efficient process;
- Time spent researching and development of current projects;
- Seeking to improve processes, services, materials or devices;
- Production of prototypes or performance testing;
- Development of software or IT solutions;
- Investment in failed projects or developed products that are never launched/used;
- Efficiency of product, process or service, or;
- Employing any staff of a highly skilled background or with technical or scientific background.
Manufacturing Case Study
Our client is a high technology independent manufacturer of scientific detector systems including x-ray, imaging and camera solutions. Their customer base includes companies in the scientific, industrial, medical and military sectors. They have been designing and building specialist systems for more than three decades.
They have business operations in the UK and overseas.
Research and development is at the heart of every project they undertake, so many projects were able to be included in claims for R&D tax relief.
Three of the larger projects for the current accounting period claim included:
- Developing an industrial x-ray inspection machine that could detect very fine errors
- Designing a portable system that combines two camera technologies with a laser range finder
- Building a covert driving system using short wave infrared panoramic cameras
We would welcome the opportunity to discuss your business and help you assess the potential benefits which might be available to you under the R&D Tax Credit regime. Please contact us at: