Many food processing companies are undertaking Research and Development (R&D) and we have assisted a number of companies in this sector with their R&D tax credit claims. We were therefore delighted to provide three claim examples for a Food Processing Magazine Spotlight on Funding R&D Activities: ‘Are You Missing Out on Cash for Innovation’ published in April 2018.
The article highlights how R&D tax credit and relief is still too poorly understood in some industries. It runs through the eligibility criteria and draws on our expertise to inform the articles – Linda Eziquiel, Principal Consultant at RandDTax explains how to identify qualifying activities and what costs can be included in claims.
Our client case studies are summarised below
Download this pdf to read the full article
An all-natural ice-cream manufacturer
(Disotto Foods – www.disotto foods.co.uk) Disotto Foods undertake R&D in a number of areas, but particularly in developing its pioneering gelato and ice cream product range. Its R&D claims are reducing its tax bill by an average of around £40,000 per year.
This company produces sandwiches in large quantities and sometimes there is a requirement for specialist packaging. From time to time it also invest in finding and developing more efficient production processes. In 2016 its cash benefit from making an R&D claim was around £33,000.
Frozen ready meal producer
This froze ready meal producer undertakes a number of development projects each year. For example it wanted to develop its frozen food meals to provide a better eating experience. This required significant development activity to arrive at a combination meal where the components would all cook at the same time, without over our under cooking any of the ingredients. It R&D tax credit claim reduced its corporation tax bill by over £70,000 for its last tax year.
You can download a pdf of the full article here.
Linda Eziquiel, Principal Consultant, RandDTax