Food and Food Packaging
Are you one of the many food manufacturing or food packaging companies that is constantly developing new products, or new manufacturing and packaging processes or materials, to stay ahead? Claiming Research & Development (R&D) tax credits or tax relief can help you fund these activities. It's applicable to anything from recipe development, to development of the industrial manufacturing process, to experimenting with new methods of packaging food or the creation of bespoke food manufacturing machinery and much else besides.
The example below illustrates how development of an ice cream range was supported by sigificant R&D funding.
Ice cream manufacturer
We wanted to develop ice creams with unusual flavours and using 100% natural flavourings. There was R&D in the recipe design and development process and in working out how to manufacture the new ice cream recipes successfully on a large scale.
Development activities involving R&D included:
- Research into and testing of natural ingredients that could be used;
- Recipe development and small scale testing of new recipes;
- Manufacturing trials to develop the recipes and manufacturing process to work on an industrial scale.
The scientific and technological uncertainties were in how to develop effective recipes that will be of the right consistency, taste and characteristics to work in the manufacturing process, while also meeting quality thresholds all within tight cost constraints.
What was the financial benefit?
- Company annual turnover – £9 million
- Number of employees – over 50
- R&D expenditure in the year – £162,200
- Corporation tax saved – £43,100
- Total benefit in a single claim year – £43,100
Are you ready to find out if you qualify or how much your R&D claims could be worth?