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Common Industries that Qualify for R&D Tax Credits

Posted on August 13, 2020

Many businesses are not aware that they could qualify for R&D Tax Credits. If you are spending money on innovation or development, then you might have a valid R&D tax claim in the pipeline.

Unknown to many, there is a Government Scheme that could provide support to those who are taking risks in order to improve a product or service within their business. Tax Credits are available for a wide variety of industries across the UK – and that’s where we come in. Green Jellyfish are here to get you money back that you are fully entitled to, even though you might not know it yet.

Almost every trading business does some element of R&D. Below we have put together a list of the most common industries that typically qualify under the scheme.

Manufacturing R&D Tax Credits

Manufacturing Industries are the ideal candidates for an R&D Tax Credit claim, as you are probably spending money on creating and perfecting processes, making prototypes and testing before these things go to market. These are all examples of research and development, which means you are likely eligible for a claim with the HMRC.

Even if the time and money you spend on creating or developing new products doesn’t result in a success, you can still claim tax credits on the costs incurred throughout the projects lifetime.

Engineering R&D Tax Credits

Engineering businesses are constantly researching and providing solutions for chemicals, construction and resources. There is a lot of uncertainty involved in attempting to figure out issues and find the solutions to them within Engineering, which means that a claim is more than likely to be successful.

Food and Drink R&D Tax Credits

As one of the most common industries to be owed R&D Tax Credits, the lack of R&D claims which are submitted to HMRC, is incredibly low. The food and drink sector are constantly evolving their menus – developing new flavours, changing ingredients and attempting to reduce sugar content. These are all valid reasons to claim Research and Development Tax Credits.

Consultancies R&D Tax Credits

Working through many challenges and projects throughout the year, Consultancies are another industry which are entitled to claim R&D Tax Credits. Consultancies may have to investigate new processes, software, or even equipment to enable them to solve a client’s problems. All these techniques to help a business/customer are examples of where you could have an R&D tax claim on your hands.

Technology R&D Tax Credits

Due to the tech industry being so large (and constantly growing), this is one of the main areas that is constantly being developed and enhanced. Processes for developing tech could include hiring the correct person for the job, coming up with new innovations, and bettering already existing technology. These factors make the tech sector the perfect applicant for claiming R&D tax credits.

There are far too many other sectors for us to list every example which could claim R&D Tax Credits.

However, to give you even more of an idea of what industries could claim, see the list below –

– Website chat producers
– Printing companies
– Electrical businesses
– Building companies
– App developers
– Software Development

R&D Tax credits are available to most businesses yet are rarely claimed – just 1% of eligible businesses make a claim! More than often, this is the case because people aren’t aware that R&D Tax credits even exist or think that they aren’t eligible for them.

If you would like to know whether your business can claim for Research and Development tax credits, then get in contact with us.