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
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