Why Clients in the Food and Drink Industry MUST Consider their R&D Tax Relief Opportunity

Food and Drink - R&D Tax Relief

Tuesday, 12th May 2020

Is your business in the food and drink industry? Did you know that you may qualify for R&D Tax Relief?

Read on to find out how…

We wanted to highlight some examples of food & drink companies claiming valuable Research and Development (R&D) tax credits. Activities which seem like typical day-to-day challenges are attracting substantial tax incentives and we do not want you to miss out.

As you are probably aware, the R&D tax scheme is an unmissable opportunity to claim either a reduction in corporation tax of up to 24.7p in the pound or, for loss making companies, a payable tax credit of up to 33.35p of any pound spent on qualifying R&D activity.

The industry is subject to regular legislative changes, distribution complexities, food safety issues and international competition. New products are constantly flooding the market and there is a rise of online retail and home delivery, together with evolving consumer preferences and dietary awareness – all of which represent development opportunities for the industry.

Companies in the food and drink sector engage in significant research and development effort and you could be one of them. Below is a list of some of the examples of the claims that we could be making for you, if your business falls within the food and drink sector:

  1. Creating and developing new recipes and formulations to address emerging consumer preferences (such as reduced sodium, natural ingredients and sugar substitutes) while maintaining acceptable flavour profiles, product presentation and shelf-life.
  2. Improving manufacturing technology, processes and procedures to increase yield, reduce waste, improve safety, or comply with regulatory requirements or environmental legislation
  3. Developing new product flavours, appearances, textures or health benefits.
  4. Developing new packaging systems and redesigning existing packaging to reduce waste, reduce plastics or improve shelf-life.
  5. Developing software applications for processing lines to monitor and maintain cold stores.
  6. Developing software to improve the handling and logistics process.
  7. Developing fully-cooked equivalents to par-cooked foods, while still maintaining acceptable flavour profiles, product presentation and shelf-life.
  8. Manufacturing experimental batches and pilot runs of new recipes and formulations for testing new ways to identify parasites, histamine and nematodes.
  9. Developing more sustainable processes to reduce energy and material consumption.
  10. Improved techniques for the shipping and handling of products to improve the quality of end products delivered to customers.

Not sure about making a claim or if your business activities would qualify?

At Onyx our specialists are on hand ready to answer your questions. We will review your business processes and expenditure to ensure that you are maximising this opportunity.

GET IN TOUCH WITH ONYX

If you have any queries, or want to discuss this further, please give us a call us or e-mail us at  enquiries@onyxaccountants.co.uk for a FREE no obligation consultation.

Got any questions or queries? Our friendly team of tax specialists are happy to help. Just drop us a line! Call us on 0121 753 5522 or 01902 759 800.