Engineering and manufacturing R&D Tax Credits
The UK is one of the leading destinations for engineering, specialising in certain fields such as motorsport, aerospace and pharmaceutical engineering. Around 1.7 million people are employed in the UK engineering sector, with 265,000 more required annually to meet demand, making the engineering and manufacturing sectors huge contributors to the economy. Many engineering firms use research and development (R&D) tax credits to fund new employees, which can have a positive effect on the scope of R&D projects and the economy as a whole.
Research and development in engineering and manufacturing
One of the ways that the government is supporting the engineering and manufacturing sectors and encouraging innovation is through R&D tax credits. This valuable tax initiative is intended to help grow the economy – R&D tax credits have already helped countless businesses not only save thousands in tax but also helped a host of different projects come to fruition.
One such example is OSET Bikes – a company based in Bexhill, East Sussex, who are continuously developing biking technology and design from their development facility. R&D is at the core of OSET Bike’s work and they benefitted from R&D tax relief to help grow their production line, saving £64k.
Likewise, Photonic Science Limited, a high technology manufacturer of scientific detection equipment such as imaging and camera solutions, have seen great results from R&D tax credits. Photonic Science Limited made claims for several projects, including developing industry x-ray inspection machines and portable systems to combine camera and laser technologies. Working with Cooden Tax Consulting, they were able to see 100% success rate with their claims, saving £150k in tax relief.
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R&D Tax Credits
R&D tax credits have been used to contribute billions of pounds to the UK economy, with the incentive available to companies of all sizes and in all sectors. They should be an integral planning consideration for all engineering businesses, providing a great financial benefit and helping companies develop an R&D culture that helps teams make more calculated, educated risks. From wages of employees and sub-contractors to software and materials, there are various forms of expenditure which can be claimed for through R&D tax relief claims.
At Cooden Tax Consulting, we specialise in R&D tax relief, helping businesses to uncover project expenditure that you may be missing. We can identify what needs to be included in a claim and what can be left out, helping you to minimise the chance of HMRC challenging your claim.
If you’re working within the engineering or manufacturing sector and believe you could benefit from R&D tax relief, contact us today for advice and guidance.