R&D Tax Credits - Manufacturing

Research and development is vital to the manufacturing industry in order to compete in a challenging market, and R&D tax credits for manufacturing can help businesses by providing financial support to help towards covering corporation tax costs. If your company is working on innovation in manufacturing, you may be eligible for R&D tax credits.

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Average UK claim amount

R&D Tax Claim for Manufacturing

The manufacturing industry is by nature research and development intensive. 

Many companies may already be aware of R&D tax relief, but it can be increasingly difficult to classify qualifying activities. This is where our professional, reliable and knowledgeable team of experts comes in. Whether it’s developing and testing groundbreaking products, improving existing methods or designing new processing techniques, RDS are on hand to guide your business through the HMRC tax relief process.

Here at RDS, we’re proud to say we know a thing or two about R&D in manufacturing and will be happy to help and advise your company - regardless of size, products and services - every step of the way from establishing R&D eligibility right the way through to a successful claim. With RDS, you will benefit from a streamlined and transparent process from beginning to end and everything we undertake is on a ‘No Win No Fee’ basis so you can have total peace of mind.

Discover your potential claim value today

Use our handy R&D tax relief calculator to find out how much you could be claiming back.

R&D Calculator

What activities qualify?

Please find below some examples of activities that qualify as R&D expenditure in manufacturing.

Prototyping, modelling and prototype testing.

Developing 2nd gen or improved products.

Designing & developing efficient and innovative operational processes and CNC programmes.

Improving equipment capability, productivity, cost efficiency, safety or energy efficiency.

Improving manufacturing processes using new materials, automation or robotics.

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What can you claim?

Please find below what you can include in your R&D tax relief claim.

Staff costs including salaries and expenses.

Subcontractor and freelancer costs.

Consumables (materials used up during R&D and utilities).

Software directly employed in the R&D activity.

Travel and subsistence expenses.

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Sectors

We have helped businesses across a range of sectors claim R&D tax credits for their innovative work.

Our Claim Process

Assessment

An initial phone call or face-to-face meeting is typically the first step, so that one of our Business Development Managers (BDM’s) can discuss potentially qualifying R&D projects with you & explain the activities that can be included within an R&D claim.

Analysis

Following a successful eligibility check, our team will officially engage with you & request the straightforward financial information required from you and your accountant in order to analyse the R&D costs. A report call / meeting will also be carried out so that a justification report can be created.

Report & Sign Off

Once the claim financials and report have been completed, our team will liaise with you to discuss the final claim and get feedback from you & a confirmation that all eligible activity has been included. Following the review and claim sign off, we will submit the information to your accountant.

CT600 Submitted

One of the benefits of our approach is that we don’t tread on the toes of your accountant by taking over as your ‘agent’ with HMRC. We pass over the completed claim info to your accountant so that they can alter your corporation tax return (CT600) to include the figures, and also attach the report for HMRC.

Funds Received

By creating a comprehensive justification report & detailing the figures included within the claim, the process of HMRC reviewing the submitted info and approving the claim should be quite quick - typically taking 4-6 weeks. You will receive your benefit directly from HMRC, we then purely bill you upon success.

Frequently asked questions

Below are some of the most frequently asked questions we get regarding making an R&D tax relief claim. If you have any more questions please contact our team.

R&D tax credits is an incentive where UK limited companies can receive a reduction or rebate on their CT for funds spent on eligible R&D activities. This incentive was established by the government in 2000 and has continued to support businesses of all sizes and sectors to grow.

No, you do not need to create a new product to qualify for R&D tax credits. For instance, you can make significant advancement or appreciable improvement to existing machinery, in a manner that promotes efficiencies within your sector.

Yes, you can claim for unsuccessful projects if you can demonstrate that an advancement was sought, and you attempted to overcome the ‘uncertainties’ you faced during your research and development endeavours.

No, we do not bill you until you receive your benefit from HMRC. The relationship we build with our clients is based on the principles of trust and transparency. Therefore, the benefit is paid directly to you before you pay us for the services rendered.

For many firms, the prospect of R&D can seem daunting and extremely complex at first, therefore RDS aim to make the process as simple and straightforward from the onset.

Step 1: A 15-minute conversation with the Business Development Team, to discuss eligibility.

Step 2: Signing of the NDA/ client agreement, dictating the terms and conditions of our service.

Step 3: Arranging and undertaking a Project Technical Report call with your dedicated financial analyst. This will entail evidencing your developmental endeavours and apportioning financial calculations to support your application with HMRC.

Step 4: Reviewing compiled information to ensure you are completely satisfied with the information collated prior to its submission to HMRC.

Step 5: We actively monitor the status of the application to ensure that any benefit is realised within the anticipated timeframe.

HMRC aim to process payable credit claims within 28 days of receiving them. However, processing time can be affected by aspects such as, time of the year. There is a general increase in demand for months like March and December.

Ready to get started?

With three UK office locations we are always on hand for a call or to meet in person. Start your journey with RDS today.