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How to maximise your R&D claim in the Manufacturing sector

Author: Gareth Smyth

According to HMRC’s annual R&D statistics, the volume of UK businesses claiming R&D tax credits has been incrementally increasing over recent years. As uptake of the scheme across all sectors has increased, the manufacturing, scientific and technical sectors have continued to constitute the greatest volume of claims making up a total of 66% of claims and 71% of the total amount claimed for 2018- 19. During this period, the manufacturing sector submitted over 14,000 claims and claimants were awarded over £1.4 billion from HMRC.

Since the R&D tax credit scheme was introduced in 2000, awareness of the incentive has been growing. More business owners are now aware of the benefits and understand claiming their cash award from HMRC is an entitlement- if you have carried out qualifying R&D work and you fail to make a claim, you are missing out on cash from HMRC that should be yours. Even with the scheme gaining recognition, each year thousands of eligible companies fail to make a claim preventing millions of pounds from entering their businesses.

Whilst some business owners don’t claim because they do not realise their company can qualify, others fail to claim because they think the process will be complex and lengthily. This can be true if you attempt to claim without the guidance of a specialist like randd uk. R&D tax credit submissions can be overwhelming and confusing, and maximising your reward can be difficult to achieve independently which is why experts like randd uk are here to help.

Randd uk work with clients across the UK to maximise the outcome of their R&D tax credits claims. Since starting in 2008, we have maintained a 100% success rate, submitted over 3000 claims on behalf of our clients, and secured over £150 million from HMRC. We stay up to date with changing R&D legislation and maintain a strong relationship with HMRC so we always know how to win the most for our clients. We have industry specialists across many sectors and technical experts that can fully understand the details of our client’s R&D projects. From the initial consultation with our R&D consultants, to submitting your financial information, formulating your technical reports and tax calculation, we have professionals with decades of experience to oversee each step of the claim process.

Is your business eligible without realizing it? Common types of R&D in the manufacturing sector are:

  • Making improvements to existing products, e.g trialing new materials to make something more durable
  • Innovating new processes that makes a product or assembly more efficient e.g reducing waste and streamlining processes
  • Investing in bespoke software e.g to create new products or improve existing ones
  • Problem solving!
  • Creating prototypes
  • Trial and error
  • Industry firsts

If your firm innovates products that are functionally better than similar products available on the market there is large scope for your company to make a successful claim. For example, a recent claim saw one of our clients receive £189k from HMRC for a first-time claim for their R&D regarding the design and creation of cabinets.

Claiming R&D tax credits is a cost-free and fast way of securing your company a cash injection which is more important than ever given the financial uncertainty caused by the pandemic. Stay ahead of the competition and contact our office today to see if your company is eligible.

Could you be eligible for an R&D Tax Credits claim?

During these turbulent economic times, businesses across the country are looking for solutions to their cash flow problems. Many companies are looking for grants and loans and overlook that fact they could be eligible for R&D Tax Credits. By successfully claiming R&D Tax Credits, your company could receive a cash injection from HMRC in as little as four weeks.

Call our experts today on 01332 477 070 for a free, no obligation eligibility consultation. Your business could be our next success story!