R&D in packaging? Now that’s a wrap!

Yes! Companies creating innovative packaging solutions must consider their ability to claim R&D tax relief.

Sustainable packaging considerations such as material selection, volume efficiency, and recyclability are a major factor in many of today’s business decisions. Eliminating unfavourable materials and using post-consumer recycled content are key drivers in global sustainability objectives. Consequently, there is a need to design, innovate and create more tailored or suitable packaging solutions.

If your company is focussed on improved packaging solutions, it is critical that you consider R&D tax relief. R&D tax relief provides valuable cash injections to fund project work where technical or scientific advancements are being sought.

Responding to price and delivery requirements, performance characteristics, environmental concerns and the availability of raw materials are just a few examples of the technical challenges faced by many companies across the UK. The time and money invested in the idea concept, design, feasibility, build and testing of solutions may qualify for R&D relief.

The R&D tax relief scheme is an opportunity to claim a reduction in corporation tax of up to 24.7% of qualifying expenditure, or, for loss making companies, a payable tax credit of up to 33.35% of qualifying expenditure.

YesTax works with many clients in the packaging sector, securing valuable R&D tax relief which enables continuous development. We have highlighted some of the projects where claims have been made previously:

  • Evaluating paper and plastic sheet materials for use in the construction of a packaging system for a food product that must meet strict dry storage legislative requirements.
  • The development of wool-based packaging insulation for a variety of perishable and non-perishable goods.
  • Devising and experimenting with alternative process methodologies for a complex multi-component packaging system.
  • Developing packaging to be the same quality as brand-new packaging but manufactured using high amounts of recycled material.
  • Development of an environmentally sound wool-based planting pouch which aims to improve the yield and growth rates of commercially grown roses.

If you believe your company is advancing technology through the creation of new or innovative packaging solutions, a conversation with YesTax is essential. Whether you’re making a claim or not, there isn’t a question we can’t answer about this sector. If you would like a complimentary health check to ascertain your eligibility, please get in touch: hello@yes.tax