Manufacturing projects that may qualify for R&D tax relief include:
- tooling and equipment fixture design and development;
- designing innovative manufacturing equipment;
- integrating new materials to improve manufacturing processes;
- evaluating and determining the most efficient flow of material;
- increasing ease of operation or suitability of manufactured products;
- developing processes that would meet increasing regulatory requirements; or,
- Modifying existing processes or systems to improve capacity and performance.
What projects can be included in an R&D Tax Credit claim for manufacturing projects?
- defining technical objectives;
- identifying uncertainties;
- feasibility studies;
- reviewing new and competing technologies;
- analysing, designing and developing the technology;
- producing technical specification or other documents to explain and support the R&D project and advancement;
- testing the product, process or software;
- planning and managing projects
- administration, finance, and personnel services specifically required to support R&D activities;
- training to support R&D.
What R&D expenditure can be claimed for manufacturing projects?
- Staff Costs – Employee costs (salary, national insurance and employer pension) are apportioned for their time spent on the R&D project plus any reimbursed associated business expenses.
- Software – Purchased for R&D purposes and costs apportioned for any subsequent use.
- Subcontracted R&D – You can claim 65% of what you paid your R&D subcontractor.
- Utilities & Consumables – Water, fuel, power and material used in the project.
- Prototypes – Produced for R&D purposes