R&D Tax Relief in the Print Sector
The UK is the world’s fifth largest producer of printed products, behind the USA., China, Japan and Germany. Companies in the print industry regularly undertake experimental development efforts aimed at improving printing process speed, throughput, print resolution, colour quality and accuracy. In addition, there is much experimental analysis of print media, inks and other new or improved materials.
Notwithstanding the digital transformation, it has over recent years become clear that to increase brand loyalty and connect with the consumer, firms need to engage in multi-sensory marketing. Imagery alone is not enough.
The growing advertising needs of enterprises across the globe, along with extensive technological proliferation, currently represent the key factors driving the market growth. Widespread use of high-quality printed packaging and sustainable materials for advertising and branding acts as another major growth-inducing factor.
The print industry is evolving, not dying. In order to succeed, printing companies must adapt to new markets and evolve their products accordingly. Commercial printing vendors are also expanding their services toward media and document management services, which is expected to enable businesses to enhance their distribution and promotion capabilities for both print and non-print materials. Moreover, green commercial printers that use eco-friendly paper, inks, coatings and chemicals, and facilitate reducing and reusing waste, are projected to drive the growth of the market further.
Investment in R&D provides incredible value through innovation and technological advances, delivering vast benefits to the wider economy, GDP and the UK’s competitiveness in the global market. The R&D tax relief scheme gives a benefit of somewhere between 24.7% and 33.35% of the qualifying expenditure identified, depending on a company’s tax position.
Many companies are conducting qualifying R&D activities for R&D tax relief purposes in this sector daily This may include developing new products, processes or services through scientific or technological innovation.
Typical qualifying activities within this sector include but are not limited to;
- Conducting experimental testing to determine the relationship between web speed and print resolution.
- Developing machinery modifications and conducting experimental analysis of water-based inks with a printing system originally designed for solvent based chemical inks.
- Designing and developing an advanced computer-based control and monitoring system for use with a printing system.
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
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