The food and drink industry is the biggest under claimer of R&D Tax Credits.
Often overlooked by most, the food and drink sector is anything buy excempt from claiming R&D. If your company is developing new food or drink products, then you could be entiled to a cash injection to help your business grow.
Why is R&D important in the Food & Drink industry?
The food & drink industry is often overlooked when considering R&D Tax Credits, but the amount of different qualifying projects is staggering. The creation new food recipes, the trialing of new brews and the development of new equipment are all different areas where the Food and Drink industry can claim R&D.
When looking at this sector for R&D, it’s often best to take a step back and look at how different products are made. For example, when creating new sugar free food products, the removal of sugar and the adding of alternative sweeteners can completely change the texture of a product. This means the company needs to trial multiple different ingredients which can each alter the chemical formulae in different ways leading to different results in the end product. This process can be very time consuming and require a significant level of trial and error.
With more and more microbreweries and distilleries popping up every week, new recipes and process are constantly being developed. These companies are anything but exempt from claiming R&D and should be taking advantage of a 19-33% tax rebate on projects.
What qualifies for R&D in the Food & Drink industry?
As mentioned above, there are a number of different things that qualify for R&D in the food & drink sector as the process of bringing new products to market can often be a long one. The constant need for trial & error in not only creating a new product, but also finding a way to mass produce it means that there are a number of activities that can qualify for the scheme. Below are some examples but there are many more beyond these:
- Development of new product formulations and manufacturing processes.
- Elimination of allergens, preservatives or artificial colourings.
- Modifying an existing product’s flavour, texture, form and/or shelf life.
- The creation of new brewing or distilling processes to create different flavours or textures.
- Creating new or improved manufacturing processes to enable the increased production of food and drinks.
- Trialing of different recipes to reach desired end results.
What qualifies for R&D in the Food & Drink industry?
food & drink sector as the process of bringing new products to market can often be a long one. The constant need for trial & error in not only creating a new product, but also finding a way to mass produce it means that there are a number of activities that can qualify for the scheme. Below are some examples but there are many more beyond these:
- Development of new product formulations and manufacturing processes.
- Elimination of allergens, preservatives or artificial colourings.
- Modifying an existing product’s flavour, texture, form and/or shelf life.
- The creation of new brewing or distilling processes to create different flavours or textures.
- Creating new or improved manufacturing processes to enable the increased production of food and drinks.
- Trialing of different recipes to reach desired end results.