Aerospace and Investment in R&D
Investment in R&D provides incredible value through innovation and technological advances, delivering vast benefits to the wider economy. The UK aerospace industry is a leading investor in R&D - recent analysis from the Aerospace Technology Institute (ATI) shows that over a 10-year period, for every pound spent on R&D in the UK aerospace industry, the wider economy benefits by generating, on average, 70p of gross value added as a result of technology spill-over into other industries.
Companies that supply equipment to the aerospace sector are highly regulated and strive to improve their competitive position by continually engaging in research and development. Their electrical and mechanical engineers, designers and machinists spend substantial amounts of time developing and enhancing the performance, quality, reliability and dependability of their products and processes.
Furthermore, the sector is committed to improving its sustainability by reducing environmental impact. Technologies such as low-emission propulsion, energy storage, augmented and virtual reality, artificial intelligence and automation are all on the agenda to assist in fulfilling these ambitions.
The R&D tax relief scheme gives a benefit of somewhere between 24.7% and 33.35% of the qualifying expenditure identified, depending on the company’s tax position. It is vital that as a leading player in the global aerospace industry, the UK doesn’t fall behind its competitors. Providing support and encouraging continued investment in R&D is critical.
If you are working within this sector, it is important you benefit from the tax relief available, given the level of time and investment spent on qualifying R&D activities. Typically, qualifying examples include, but are not limited to:
• Developing new mechanical systems and components to improve aircraft performance and control.
• Developing new composite materials and manufacturing methods to reduce weight, durability and performance.
• Developing and refining new communication and navigation equipment and systems.
• Designing new or improved manufacturing processes to increase production efficiency or component quality.
• Researching improved materials for component parts, such as polymers, alloys, and composites.
• Examining component defects or failures to improve product quality.
• Testing new or existing components to evaluate performance.
• Developing new or improved manufacturing processes to build aircraft components with stringent specifications or tight tolerances.
If you would like us to undertake a complimentary review or to assess your eligibility to make a claim, then please get in touch at hello@yes.tax. We’d be delighted to help.
YesTax. Positively Better.