What do Research and Development Tax Credits mean for your Manufacturing Company?
For some time now, the government has been aware of the link between innovation and economic growth. They have sought ways to reward those within industry and business for the role they play in promote efficiency and growth. Her Majesty’s Revenue and Customs (HMRC) has distributed over £14 billion in Research and Development tax credits […]
For some time now, the government has been aware of the link between innovation and economic growth. They have sought ways to reward those within industry and business for the role they play in promote efficiency and growth. Her Majesty’s Revenue and Customs (HMRC) has distributed over £14 billion in Research and Development tax credits since the turn of the last millennium, to encourage innovation and forward-thinking across the board.
How does this relate to manufacturing?
It is a commonly-held misconception that innovation takes place at the drawing board. In fact, much of it is born out as part of the manufacturing and production process. From the development of new handling and processing techniques, to the on-site development and testing of prototypes, manufacturing is a hot-bed of innovation. This is something that the government has come to recognise: of all industries to benefit from the current R&D tax incentive manufacturing is one of the fastest growing. R&D tax relief has been granted for such things as adapting existing processes to marry up with new legislation, as well as integrating new technology into existing manufacturing systems.
Are you eligible?
As indicated above, many manufacturing firms fail to apply for Research and Development tax credits from HMRC because they do not believe they will qualify. The regular and consistent innovations that they develop and promote on a daily basis are ignored because they see it as part of their job description, rather than the constant state of reinvention that it actually is.
Don’t miss out on your share of R&D tax relief
Often, it is the complexity of tax credit legislation, coupled with collating the large reams of data and evidence to satisfy HMRC, that causes manufacturing enterprises to think twice before applying for R&D tax relief. This is an area in which we can help, since we have noticed common threads in terms of innovation in manufacturing that hold true no matter which sub-section of the industry you company caters to.
How to claim tax relief for Research and Development
It is no longer the case (if ever it was) that R&D is confined to a research lab or an engineering bay. Certainly, such considerations have never been the criteria for government-backed R&D tax relief. This is hardly news for those within the manufacturing industry, who know that you innovate as much by doing, as by designing. In order to qualify for R&D tax credits for manufacturing,/A>, you must be able to show your innovative processes, and supply HMRC with such evidence as they require.
If you’re looking for a better understanding of R&D tax credits, and how they can impact upon your manufacturing business, give R&D Tax Solutions a call today on 0161 298 1010, to speak with a member of our friendly and professional team.