Why clients in the food and drink industry must consider their R&D tax relief opportunity

We wanted to highlight ten examples of food & drink companies claiming valuable Research and Development (R&D) tax credits. Activities which seem like typical day-to-day challenges are attracting substantial tax incentives and we do not want your clients to miss out.

As you are probably aware, the R&D tax scheme is an unmissable opportunity to claim either a reduction in corporation tax of up to 24.7p in the pound or, for loss making companies, a payable tax credit of up to 33.35p of any pound spent on qualifying R&D activity.

The industry is subject to regular legislative changes, distribution complexities, food safety issues and international competition. New products are constantly flooding the market and there is a rise of online retail and home delivery, together with evolving consumer preferences and dietary awareness - all of which represent development opportunities for the industry.

Companies in the food and drink sector engage in significant research and development effort and we wanted to provide you with a list of examples of the claims that we are currently making in this sector to help you identify claims within your client base.

  1. Creating and developing new recipes and formulations to address emerging consumer preferences (such as reduced sodium, natural ingredients and sugar substitutes) while maintaining acceptable flavour profiles, product presentation and shelf-life.
  2. Improving manufacturing technology, processes and procedures to increase yield, reduce waste, improve safety, or comply with regulatory requirements or environmental legislation
  3. Developing new product flavours, appearances, textures or health benefits.
  4. Developing new packaging systems and redesigning existing packaging to reduce waste, reduce plastics or improve shelf-life.
  5. Developing software applications for processing lines to monitor and maintain cold stores.
  6. Developing software to improve the handling and logistics process.
  7. Developing fully-cooked equivalents to par-cooked foods, while still maintaining acceptable flavour profiles, product presentation and shelf-life.
  8. Manufacturing experimental batches and pilot runs of new recipes and formulations for testing new ways to identify parasites, histamine and nematodes.
  9. Developing more sustainable processes to reduce energy and material consumption.
  10. Improved techniques for the shipping and handling of products to improve the quality of end products delivered to customers.

Whether you are making a claim or not, there isn’t a question we can’t answer about this sector. If you would like us to undertake a complimentary health check to ensure that you are maximising this opportunity, please email hello@yes.tax.