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.

Get in touch today to see how we can help your business with your R&D tax claim.

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