This sectors makes up for 24% of all R&D claims, could you be missing out?
The manufacturing industry is the second biggest claimant of R&D recieving a total of £465 million back last year. If your operate within this sector and aren’t claiming then you could be missing out on thousands of pounds that could help take your buiness to the next level.
Why is R&D important in the Manufacturing industry?
In 2020, manufacturers benefited from having the highest average R&D claim value of any industry, at just over £100,000. This figure is testament to the sectors ongoing strive for better products, lower costs, and a reduced carbon footprint. The industry is extremely technical and therefore holds massive potential for further research and development in the coming years.
The creation of new products can often be a long, painful process which requires a lot of design time, prototyping and trial & error. These are all areas that can be included as part of the R&D claims narrative as well as the costings.
A percentage of staff time, subcontractor costs and material costs can all be considered when making a claim; and combining these all together often leaves companies with a sizeable figure. For example, if a business has £100k in qualifying expenditure, they can expect anywhere between £19k and £33k to be either paid back in cash or knocked off an existing corporation tax bill. This is an invaluable amount that businesses can use to reinvest in their business for purchasing of new equipment or for taking on more staff.
What qualifies for R&D in the Manufacturing industry?
As the manufacturing industry is ever changing, with new products constantly being developed, redesigned and improved, the scope for an R&D claim is broad. Below are some examples of what could qualify, but there are plenty more beyond these:
- Innovative product development
- Improvement of existing products
- Design, testing and trialing of prototypes
- Integration of new tech on old systems
- Alterations to the process to reduce environmental impact
- Integration of new materials
- Streamlining of the manufacturing process
- Creation of new tooling to be used in the making of products

What qualifies for R&D in the Manufacturing industry?
As the manufacturing industry is ever changing, with new products constantly being developed, redesigned and improved, the scope for an R&D claim is broad. Below are some examples of what could qualify, but there are plenty more beyond these:
- Innovative product development
- Improvement of existing products
- Design, testing and trialing of prototypes
- Integration of new tech on old systems
- Alterations to the process to reduce environmental impact
- Integration of new materials
- Streamlining of the manufacturing process
- Creation of new tooling to be used in the making of products
