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 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.

R&D Tax Credits in Manufacturing