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R&D Tax Credits for Personal Care, Beauty, Cosmetics and Aesthetics

The research and development (R&D) tax credits scheme might not seem glamorous, but it’s incredibly relevant in personal care, beauty, cosmetics and aesthetics. These sectors generate multi-billions annually for the UK economy. R&D is rife in these highly regulated industries where consumer health and safety are prioritised. 

Success is dependent on how well a company can innovate, and the government’s R&D tax credits scheme rewards businesses for doing just that.

You could also be missing out on claiming back up to 33% of R&D costs to inject straight back into your business to spend however you choose.

Personal care, beauty, cosmetics and aesthetics have been boosted by expanding thriving technologies, such as bio- and nano-tech. There’s also the ever-growing demand for organics, anti-ageing, male grooming, alternatives to animal testing, greener packaging, and reducing carbon footprint. These are areas where R&D likely takes place, meaning there could be R&D tax credits claims to be had. The government will even pay out on failed projects.

With businesses requiring a combination of material, life, and human science to create innovative devices and products, the sectors are well-placed to reap the financial rewards of the scheme.

With non-stop product launches and a never-ending stream of social media beauty trends, companies thrive on newness. These sectors face significant challenges, which are expected to intensify. Growing health concerns and regulatory barriers are among them, and the key lies in R&D.


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?