We find that many companies assume that the projects they carry out are not eligible for R&D tax relief, but we have submitted claims for businesses in almost every industry you can think of!
Food manufacturing is one of those areas which is rife with innovation, but one of the lesser known areas for claiming tax relief.
There are a number of drivers for R&D within the food industry. These include, but are not limited to;
There is a constant demand for advances in this sector, especially in recent years with increased pressure from consumers for plant-based replacements, gluten and lactose free options and a decrease in single-use plastics. Legal changes also have an effect, such as the 2016 sugar tax, meaning that companies producing food and drink have a legal requirement to alter their recipes without a detrimental effect on the flavour.
Due to these reasons, we have a high number of clients from within the food and beverage sector who are continuously pushing the boundaries to meet the ongoing commands of consumers.
Costs including staff costs, testing on successful and unsuccessful projects and raw materials can all be used in an R&D claim. Catax can help you regain as much as 33% of your original costs to invest back into your business.
Case Study Example:
Our client, a specialist bakery, supplies some of the most prestigious retailers in the country with top quality fresh, part-baked and frozen prepared Bagels. They have sought an advance in technology through significant developments to their bagel production and bagel processing machinery, in pursuit of new product developments and improvements to existing product ranges.
Our client made the decision to advance their niche market through innovation in the areas of product performance, which required extensive trial and error testing surrounding different quantities of dry ingredients and natural colour enhancements to produce market leading and innovative products. Many mechanical and process advancements were required to accommodate improvements to bagel recipes when exploring non-standard approaches to all-natural ingredients, nutrients, flavouring, colouring, and microbial reactions.
The development involved in this project represents a clear improvement upon the technological baseline of operating systems and machines within the mass production baking industry.
For this case, Catax helped the client claim back £65,000 in benefits!
Catax can help support your business with an R&D claim
If your business is taking part in any of the above, or other activities relating to the advancement of technology in the food industry, you could be owed thousands back in tax relief. The range of R&D is wide and touches many areas that haven’t been described above, however if you are developing products or services in any areas of Food Manufacturing, get in touch with us today. We have a dedicated in-house R&D team ready to advise on whether you could be eligible.
0300 303 1903