The UK maritime and marine industry is a solid contributor to the national economy’s GDP (£3.5bn to be precise). The industry itself supports over 1 million jobs while also being responsible for 95% of UK global trade, which in monetary worth equates to over £500bn per year. With over 5,000 companies across the UK (through subsidiaries and the supply chain) as well as a turnover of over £10bn, it’s clear to see how and why the Maritime and Marine industry is so respected across the country.
Each year, more and more investment is being injected into the research and development aspect of the industry whether it’s through advanced materials to improve travel performance against corrosion or processes used to improve processing bilge water abroad cruise liners. This is to help the industry grow even further and enable it to compete at the highest level against the likes of China, the Netherlands and the U.S.
R&D Tax Credits
With increasing R&D investment into the sector, there is growing concern that certain specifics of the process may be too ‘technical’ as it relies on innovation and ultra-complex problem-solving solutions that may not be recognised as qualifying R&D (in the eyes and criteria of the UK Government). On the other hand, it should be noted that although some aspects may not be considered for it, there are still plenty of other R&D projects that can qualify for the scheme. In fact, because this scheme is not universally known, most businesses don’t bother with the claim process and end up becoming a missed opportunity.
This incentive (introduced in 2000) is hugely beneficial to any business that wants to claim back their R&D expenditure. You are essentially undergoing risk-taking activities in the hopes of creating an innovative system/product that will enable you to become more efficient with your processing and improve performance when at sea. Regardless of the marine industry’s sub-sector that you are operating in if your business is British and a private limited company, take a risk with your ambition and you can be taken to new heights with the help of the R&D tax credits.
What Qualifies for R&D in the Marine Industry?
A couple of the qualifying projects were briefly mentioned before, but in case you can’t remember them, one of the qualifying projects were improving methods for processing bilge water aboard cruise liners. The other, developing advanced materials or other construction processes for reasons such as protection from corrosion and improving overall maintenance of the ships. Other examples of projects are:
- Creating improved engines for less emission wastage.
- Improving the performance, range, and mission capabilities of USVs.
- Constructing or adapting drone technology.
- Evolving propulsion systems for more rapid travel.
It’s important to note that this is not everything there is to know about R&D tax credits in the marine industry. In fact, due to the dynamic nature of the industry, everyday new projects, regulations, etc. come up that meet the criteria for the claim.
Here at Green Jellyfish, we have a group of dedicated R&D Tax specialists who guide your claim to success with full transparency at every stage.
If you are looking to make an R&D Tax Credit claim for your business (of any industry), the Green Jellyfish team is more than happy to help.
Contact us at 033 000 20010