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.
- 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.
- Improving manufacturing technology, processes and procedures to increase yield, reduce waste, improve safety, or comply with regulatory requirements or environmental legislation
- Developing new product flavours, appearances, textures or health benefits.
- Developing new packaging systems and redesigning existing packaging to reduce waste, reduce plastics or improve shelf-life.
- Developing software applications for processing lines to monitor and maintain cold stores.
- Developing software to improve the handling and logistics process.
- Developing fully-cooked equivalents to par-cooked foods, while still maintaining acceptable flavour profiles, product presentation and shelf-life.
- Manufacturing experimental batches and pilot runs of new recipes and formulations for testing new ways to identify parasites, histamine and nematodes.
- Developing more sustainable processes to reduce energy and material consumption.
- 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.