Inventions in the food and drink industry happen in kitchens, production facilities, and even on the farm.
If your client owns a food business that is working to improve products, processes, or sustainability, they could be eligible for valuable R&D tax relief.
Could your client qualify?
There are thousands of food and drink businesses across the UK, many of which are unaware that their daily activities may qualify as research and development.
To qualify for R&D tax relief, your client’s projects must meet the following criteria:
- Make or seek an advancement in science and technology.
- It must not be easily worked out by another professional in the sector.
- They must contribute to the overall knowledge of the industry, not just their own business.
To help you identify if your client is eligible, consider whether the business has:
- Modified recipes to reduce allergens or meet dietary requirements
- Developed new preservation techniques to extend shelf life
- Enhanced production efficiency to increase output
- Created new packaging to improve sustainability
- Reformulated products to reduce sugar, salt, or preservatives
These are just a few examples of projects that could qualify for R&D tax credits, and if your client has spent time, resources, and money trying to improve food products or production methods, they may be entitled to relief.
Why does the Government support R&D in food and drink?
The UK food and drink industry is constantly evolving to meet consumer demands, particularly with the rise of veganism and increasing social consciousness over the past 15 years.
Government-backed R&D tax incentives encourage businesses to innovate in key areas such as:
- Healthier and allergen-free foods
- Sustainable packaging solutions
- Ethical sourcing and environmentally friendly production
- Alternative proteins and meat substitutes
These efforts not only drive business growth but also contribute to the wider economy by improving sustainability, public health, and technological advancements in food production.
What costs can be claimed?
Eligible costs for R&D tax relief in the food and drink industry include:
- Ingredients and raw materials used in testing
- Staff wages, National Insurance, and pension contributions for R&D work
- Power and utilities used in the R&D process
- Subcontractor and external specialist costs
Contact randd uk today to explore your client’s eligibility and calculate your potential claim.
