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BIGGER, BETTER, FASTER: R&D YOUR WAY TO AN INNOVATIVE MANUFACTURING PROCESS
The manufacturing industry provides ample opportunity for research and development (otherwise known as R&D). And, while…
R&D tax credits are a powerful way for a manufacturing business to gain money back from HMRC and fund their growth. But a large number of manufacturing companies don’t know exactly what part of their operation will qualify for R&D tax credits. The definition of Research and Development by the government and the tax man is complex and changing. So, knowing which manufacturing projects qualify can send a manufacturing business into a great place. And manufacturing is a vital part of the UK economy.
Let’s take a look at R&D tax credits for manufacturing projects and see which ones qualify
Solving problems all day long
One of pour clients spend all of their time developing solutions in the semiconductor industry day after day. They just saw this as their work, their role and their mission as a business. Because this is all they do every day, all day, they didn’t see it as a specific Research and Development project. They just saw it as what they did.
We were able to help them identify the costs associated with R&D and put in a massive claim for R&D tax credits for their business. They used the money to build the business and now put in a claim every year. And all it took was a call to our team. We did all the legwork so our client could get on with running their business.
Providing solutions in the aftermath of failure
We always readily associate R&D with success. There are many reasons that you should look for R&D tax credits as much in the aftermath of failure as you do while basking in the glow of success.
One of Lumo’s clients was called in by a business as one of their projects failed dramatically. Using an independent report into the failure as a starting point, our client spent their time looking at two things –
The project was one of innovation and testing. Our client built a custom machine to test the companies process and find the ideal solution of making sure it doesn’t go wring again in the future. The failure of one process lead to a major success in the R&D tax claim for our client as they benefitted from tens of thousands of pounds returned by HMRC.
New equipment can qualify as much as new products
The natural way of thinking with a manufacturing business is focused on R&D tax claims being for a new product. But there are a series of different reasons that a manufacturing business can make an R&D tax claim, including –
And the last of these is exactly what one of our clients did. They set up a new machine and had to work to integrate this into their existing production line. A manufacturing business knows that getting new equipment isn’t simply a case of buying a machine, plugging it in and away you go! Manufacturing businesses need all the support they can get wherever they are in the world. At Lumo, we take the strain and make it easy for a manufacturing business to identify R&D projects and make claims for them too.
Better designs and better results
Another Lumo client spends their time developing products that are designed to reduce the radiation risk to hospital staff to nil. They have spent a lot of time and money testing different materials in different designs to come up with their finalised product. The timeline was long and the discarded materials for solutions that didn’t quite make the grade were considered a loss to the business.
But that’s when a conversation with an R&D tax credits expert from Lumo changed the way they looked at their business. These materials, staffing costs and other associated expenditure even from unsuccessful prototypes can be included in a valid R&D tax credits claim. Think about all of your projects and consider that even a failed one can be part of a claim. If you want to know more about this then speak to our expert team today.
If you want the lowdown on R&D tax claims and what manufacturing projects qualify then get in touch. We have been helping manufacturing businesses for years and know this inside out. We find claims where you might not have even considered so all us for a free, no obligation chat about your business.
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