Our client Clinical Print Finishers UK Ltd has received £74,000 in R&D tax relief from the government after developing machinery that speeds up the leaflet folding and glueing process by 400%.
The innovative company is at the forefront of the miniature print finishing industry, specialising in leaflets folded to fit neatly into handbags, wallets and boxes, such as the advice provided in tablet packets.
It also produces Z Fold Cards, which are folded to fit into a pocket but can contain up to 72 printed pages. These are often used as pocket maps and guides for tourists or for big events like festivals.
Creating them has previously been labour intensive, with an experienced person able to manually glue about 100 an hour.
After seeing increased demand for these types of cards, Clinical Print Finishers UK Ltd decided to try automating the Z Fold Card folding and glueing process so both folding and glueing could be handled by one machine.
The machinery needed to be able to operate two conveyor streams at once, with one containing the folded insert and the other holding the card it would be glued to. It also needed to deliver the glue at the right time onto a variety of materials.
The technology developed by Clinical Print Finishers UK Ltd is unlike anything else in the marketplace, and has sped up production by 400%.
Clinicals’ R&D activities resulted in £74,000 in tax relief from the government, with the help of Catax (a Ryan company).
HMRC’s R&D tax relief scheme allows innovative companies that are seeking a technological or scientific advancement within their industry to claim a corporation tax reduction or refund for their qualifying R&D activity.
If a company has developed a new process, product or service, or modified an existing one, it could be eligible for R&D tax relief. Despite recent reforms to the tax relief scheme, it still remains a valuable incentive for innovating companies.
Jamie Court, Managing Director at Clinical Print Finishers UK Ltd, said:
“The new machinery has transformed the process of producing the Z Fold Cards, letting us do more runs, and produce a greater quantity to a higher standard.
“This was our first R&D claim, and the money we have had back is being reinvested into the business, letting us do even more research and development work.
“Claiming for R&D is a minefield and very hard for the average business to navigate alone, and so we are very grateful for Catax’s help throughout the process.”
Kully Nijjar, Associate Director of innovation funding specialist Catax (a Ryan company), added:
“Clinical Print Finishers UK Ltd is a great example of a company which has been working in its industry for decades, but never before explored the benefits of claiming for R&D tax relief.
“Its new technology is an industry-first, and is revolutionising how quickly it can produce its Z Fold Cards for customers.
“The tax relief Clinical Print Finishers UK Ltd has received is going to play a big part in enabling the company to do even more R&D over the coming years.”