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R&D Tax Credits for Mining and Quarrying

Turning big rocks into little rocks to sell may seem a straightforward process. As an owner or operator of an aggregate production operation, you’ll know this couldn’t be further from reality. 

Success in the mining and quarrying sector thrives on research and development (R&D). It often hinges on the result of substantial trial and error — a behaviour the government’s R&D tax credits scheme has been readily awarding since the year 2000.

Yet when it comes to claiming R&D tax credits, the mining and quarrying sectors are among the worst offenders for not taking full advantage of this lucrative tax benefit. Some aren’t even claiming at all. You could also be missing out on tens of thousands of pounds to put straight back into your business and spend however you choose. 

One of the chief reasons for mining and quarrying companies not or underclaiming is that the stereotypical image of R&D sits firmly in the world of white lab coats rather than hi-vis jackets. Many of the daily activities that you regard as merely day-to-day operations could be eligible for a lump sum or a reduced corporation tax bill.

Both mining and plant production processes carry an uncertainty of failing to produce material that passes laboratory testing. Even when this happens and materials no longer meet the business’s commercial needs, there’s still a lot of potential to claim. 

To eliminate this uncertainty, aggregate companies often employ numerous team members in a perpetual trial-and-error process. Wages of quarry managers, production managers, lab analysts and other engineers typically qualify as R&D — along with expenses paid to third-party technical consultants.

 

Key questions on R&D tax relief answered

What activities can be included in a R&D project?

  • 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, service or software
  • Planning and managing projects
  • Administration, finance and personnel services specifically required to support R&D activities
  • Training to support R&D

What expenditure can be claimed for in a R&D project?

  • 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

About Easy R&D’s R&D tax credit claim process

Claiming R&D tax relief is a niche.

Here at Easy R&D, we’ll probe your company’s activities to reveal the true extent of your company’s R&D.

Averaging £54,000 per claim, we’re a business built around expert tax professionals, skilled technical report writers, and flawless processes to ensure your R&D claims are successful — with maximum return. You could even reduce your corporation tax bill to zero.

HMRC’s criteria for claiming is purposefully broad, so what qualifies may surprise you.

 

Interested in claiming R&D tax credits?