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Cosmetics & Personal Care

R&D Cosmetics Tax Credits

What activities qualify for cosmetics R&D tax credits?

Carrying out research and development is important for the cosmetics and personal care industries, where consumer health and safety is a priority in this highly regulated sector.

Some examples of activities that are eligible for cosmetic R&D tax credits are:

  • Creating or developing new products or processes
  • Testing products in line with health and safety regulations and strict UK legislation
  • Developing complex formulae for products or mixing ingredients that have not been combined before
  • Sourcing new ingredients
  • Improving cost efficiency and quality of products
  • Reducing carbon footprint and developing processes and products to become more energy efficient and reduce wastage

What costs qualify for cosmetics R&D tax credits?

Of the different types of expenditure listed below, a proportion in relation to the staff working directly on the cosmetics research and development project will qualify for R&D tax credits, likewise any other relevant costs on this list:

  • Wages/salaries
  • Class 1 National Insurance contributions
  • Pension fund contributions
  • Payments to administrative or support staff (e.g. specialist cleaning staff) who work to directly support a project
  • Payments made to subcontractors and external workers
  • Payments made to clinical trial volunteers
  • The cost of materials consumed
  • Light, heat and power costs
  • Data licensing and cloud computing costs
  • Software licence fees

How to apply for cosmetics R&D tax credits

If you are developing a new material or product, or creating a new manufacturing process, the likelihood is this will involve research and development.

R&D can also apply to efforts in trying to significantly upgrade existing items or methods, and the attempt does not even have to be successful in what you are trying to achieve. Indeed, most R&D work involves some kind of initial failure, unless you are very fortunate or sufficiently skilled to nail the process first time around.
Those setbacks should be documented, along with the costs incurred, for inclusion within your r and d cosmetics tax credits claim, with which randd can help you throughout every step of the process.
Our highly experienced team of consultants has unparalleled breadth and depth of senior-level experience covering a wide range of industry sectors, including cosmetics and personal care.

Expert support claiming cosmetics R&D tax credits

Ready to go ahead with an R&D cosmetics tax relief claim? We have the expertise to identify expenditure you may not think is eligible and we are happy to manage the claim on your behalf.

We have an outstanding claim success rate and are delighted when our clients receive funds as a result of this government initiative that can help their businesses to grow and push innovation.

Our expert team will oversee every step of the process from when you initially contact us, minimising the impact on your regular schedule so you can focus on the big picture – running your business to the best effect.

With randd, you can be assured your claim will receive our 100% attention. After an initial chat to help us determine your eligibility for an R&D cosmetics tax claim, once we have established your business qualifies we will build your case and make your submission to HMRC.

Contact our team of experts by calling us on 01332 409 711 or emailing claim@randduk.com