Food & Drink
For those working within the Food and Drink industry, you will know that this is a challenging sector that often requires innovative solutions. As R&D activities go hand in hand with innovation, there is a clear link between R&D and Food and Drink.
R&D tax credits for the Food and Drink industry are a great way to mitigate any losses when undertaking innovative and inventive solutions. There are a range of Food and Drink projects that can qualify for R&D tax credit claims, with the most common ones being; working with new or improved materials and new processes and techniques.
Food and drink projects that may qualify for R&D tax relief include:
- Improving nutritional value within food content;
- Development of ingredients or food formulas that are both new and sustainable;
- Mitigating allergies such as dairy and gluten whilst maintaining taste;
- Development of food handling i.e faster, healthier and safer;
- Adapting ready meals to an healthier option with fewer preservatives and less salt;
- Improving shelf-life through variation of processing, storage temperature and packaging;
- Developing more efficient ways to minimise contamination, waste and spoilage of products;
- Improving the taste, texture and consistency of food, or;
- Scaling up sample batches in a kitchen test environment to full production speed and quantity.
What activities can be included in a R&D project?
- Overcoming challenges and uncertainties;
- Designing and making products;
- Suggesting a more cost-effective process;
- Suggesting a more time-efficient process;
- Time spent researching and development of current projects;
- Seeking to improve processes, services, materials or devices;
- Production of prototypes or performance testing;
- Development of software or IT solutions;
- Investment in failed projects or developed products that are never launched/used;
- Efficiency of product, process or service, or;
- Employing any staff of a highly skilled background or with technical or scientific background.
What expenditure can be claimed for in a R&D project?
- Staff Costs – PAYE 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;
- Subcontracted R&D – You can claim 65% of what you paid your subcontractor in respect of R&D activities;
- Software – Purchased for R&D purposes and costs apportioned for any subsequent use;
- Utilities & Consumables – Water, fuel, power, wastage material and material used in the project, or;
- Prototypes – Produced for R&D purposes.