The engineering sector isn’t alone in battling supply chain disruption, staff shortages and financial difficulties provoked by the pandemic, says Nigel Holmes, head of R&D Technical Operations at Catax.
However, the industry still wastes millions of pounds each year unnecessarily because many company managers and their accountants don’t realise that much of what they’re doing qualifies as R&D.
This means firms are missing out on a valuable government tax relief under the R&D tax credit scheme.
There are endless examples of qualifying work in this sector – we’ve worked with firms that have made a range of advances including:
– designing new ejector trailers (tax benefit over £61,000)
– adapting machinery to cut and bond cardboard and paper products (tax benefit over £86,000)
– developing car battery technology to improve electric vehicle capacity (tax benefit of over £72,000)
– developing an oil manufacture plant to create bespoke oil formulations (tax benefit of over £70,000)
– creating machinery to help produce consistent results in the manufacture of a health beverage (tax benefit over £92,000)
So it’s massively important that all engineering companies, who have either never claimed or suspect they are underclaiming, understand how the scheme works.
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