R&D in Manufacturing
The wide sector of manufacturing is one of the 21st century’s most innovative and adaptable industries. With statistics showing that customers generally prefer ethical and sustainable manufacturing approaches, the sector has to be both innovative and frugal to meet modern challenges.
The UK manufacturing industry has always been research and development intensive, so the concept of tax incentives for firms in this field is nothing new. However, an updated approach from HMRC has opened up new levels of support in the form of R&D tax relief for companies involved in manufacturing.
What counts as R&D tax relief in the manufacturing sector?
Machinery and software are two of the biggest expenses for which R&D tax relief can be claimed. A few examples of this are:
• Designing process locking software and other tools for process controls
• Research into robotics and automation
• Modifying machinery to make it more efficient, or simply to function differently
How much R&D relief does the average manufacturing SME claim?
HMRC stats from 2022 show that SMEs in the UK manufacturing sector made up almost a fifth of UK R&D tax relief claims in 2020/21. The average claim in the sector was a weighty £50,439 – an amount that any manufacturing SME would no doubt welcome.
Let Available Grants manage your R&D tax relief claim
At Available Grants, we take pride in helping manufacturing firms to discover if they are eligible to claim R&D tax relief. Working under a no-win-no-fee policy, our R&D tax specialists are ready to take your call and find out how much you can claim. Get in touch today.
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