R&D Tax Credits in Manufacturing
The R&D Tax Relief incentive is designed to encourage innovation and increase spending on Research & Development activities for companies operating in the UK. It’s one of the government’s top incentives for encouraging investment in R&D and allows up to 33.35% of a company’s R&D spend to be recovered as a cash repayment.
Why Manufacturing?
Manufacturing is one of the most important sectors in the UK, contributing 11% of the country’s GVA and employing more than 2.5 million people. Manufacturing is also responsible for 70% of R&D spend in the UK, as the sector constantly strives for further efficiency and innovation. At Green Jellyfish, we can help manufacturers claim R&D tax credits, which can help fund vital research. If you are a manufacturing company, you could benefit from manufacturing R&D tax credits, which can cover:
Staff costs
Software costs
Consumables
Sub-contractors
What makes me eligible?
Most manufacturing companies in the UK should be eligible for some type of R&D tax credits. To be eligible, you must:
- Be a limited company in the UK, subject to corporation tax
- Have carried out research and development into new products or processes
- Have spent money on these projects
What projects are claimable within manufacturing?
We have found projects in the areas below to have many R&D projects but are not limited too:
- Food, beverage and tobacco products
- Textiles and textile products
- Wood and wood products
- Pulp, paper and paper products
- Publishing and printing
- Petroleum products and nuclear fuel
- Chemicals, chemical products and man-made fibres
- Rubber and plastic products
- Other non-metallic mineral products
- Basic metals and fabricated metal products
- Other machinery and equipment
- Electrical and optical equipment
- Transport equipment
If you aren’t sure if your project qualifies, you should contact us to find out.
Our expert team of tax consultants are on hand to identify if your project is eligible, what scheme you should claim under and how much you can expect to receive.
Did you know?
The manufacturing sector the single biggest benefactor of the R&D tax credit scheme
The annual amount claimed in this sector is currently £770 million
The average R&D claim amount in this sector is £144,000
Most claims we see are for Development rather than Research
Check out our R&D tax calculator
Work out how much your claim could be worth with our easy to use R&D tax credits calculator. Remember we can claim up to two years so make sure you don’t miss out on your innovation fund.
Want to know more? Contact our team today and see how much your claim could be worth!
Check out our existing projects
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