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Decadent Vapours

Adding a silver lining to even “the finest of clouds.”

Fiscale show Decadent Vapours, how they can claim Research and Development (R&D) Tax Credits for e-liquids and vaping products being produced in their state-of-the-art facility.

Research and Development (R&D) Tax Credits, for e-liquid company, Decadent Vapours

Decadent Vapours is a multi-awarding winning e-liquid producer that was established in 2009. As a company, they develop and manufacture a range of pre-mixed and “mix yourself” e-liquids and concentrates. Alongside this, they manufacture a selection of vaping hardware.
Decadent Vapours attribute their success as a direct result of research and development. Over the years, they have invested time and resources into the development of new products. As a result of this, they have a dedicated team of “alchemists”, who work to create, test and refine new flavours. During our first meeting, we discovered the high level of research and development needed in the creation of each new flavour.
As a result, the development of these new flavours, involves a high degree of uncertainty. For example, each new formulation will need to be refined, tested and retested many times before it’s ready for market. The reason for this is to ensure that the desired taste and stability of the final product, is of the highest quality.

The Background

Decadent Vapours was founded by Peter Cole, after he became disillusioned with the poor quality of e-liquids available. Therefore, Peter started the company with the aim of creating consistently high quality and innovative products, that satisfy the demands of vapers. Over the past ten years, Decadent Vapours has built a reputation for quality and innovation. Their state of the art facilities operate to ISO9001 and they are regularly audited by the Electronic Cigarette Industry Trade Association (ECITA). This is to ensure that their products meet the highest possible standards. What really shone through is their pride in being at the forefront of their industry. As a result, Decadent Vapours have some notable “firsts”; these include being the first UK e-liquid manufacturer to introduce savoury flavours to their range. They were also the first manufacturer in the world to offer caffeinated e-liquids. Although Decadent Vapours were aware of the R&D tax credits scheme, they had not investigated what was involved in submitting a claim before meeting with Fiscale.

The Challenge in claiming R&D Tax Credits for e-liquid formulations

To successfully claim Research and Development (R&D) Tax Credits for e-liquids and vapings products, we need us to demonstrate that our client were:
producing new products for R&D Tax Credits
Producing new or improved products, processes or services
Technological uncertainties of furniture manufacturing for R&D Tax Credit
Design and development of those products involved technological and scientific uncertainty
The number of vapers in the UK has grown significantly in recent years. Part of the appeal is attributed to the variety of available flavours. As a result, it’s essential for companies to develop high quality flavours and products to become successful. Decadent Vapours currently makes over 150 different flavours of e-liquids and concentrates. As a result of being such a competitive sector, Decadent Vapours are challenged with creating the highest quality e-juices, along with being in the most desirable and original flavours. High quality e-liquids contain a maximum of four ingredients (water, glycol, flavourings and nicotine), with the taste depending entirely upon how these are combined. In order to produce the best products, all of Decadent Vapours products are manufactured in a sterile environment without any contamination. Every flavour that they create, is the result of a lengthy development process, which can take years of refinement.

The Solution

From the initial conversation with Decadent Vapours’ Managing Director, Archie Powell, it was evident that they would be eligible for R&D Tax Credits for their e-liquids and vaping products. As a result we arranged for our technical team to travel to Swansea, to discuss the work, being carried out by Decadent Vapours. Following this meeting, their project team were then tasked with gathering information of the various projects. After several phone calls, the claim was ready for approval by Decadent Vapours and then submitted to HMRC.

The Results of claiming R&D Tax Credits for e-liquids and vaping products

Within four months of their first contact with Fiscale, Decadent Vapours received a substantial cheque from HMRC, for the R&D that they had undertaken when developing e-liquids and vapings hardware. They were very happy with the amount received, which was in line with their expectations.
Firstly, we found the team at Fiscale to be very personable and professional. Although we were aware of the R&D tax credit scheme before we met Fiscale, we had not taken the time to investigate as it looked quite complex. Fiscale made the whole process of claiming R&D tax credits easy. They explained what we needed to do and by when. Whilst we pride ourselves on being creative, the way we create and manufacture e-liquids involves adherence to a very strict process. We are used to working in this way. We were really pleased with the cheque we received from HMRC. This will enable us to pursue our business by expanding export sales in Europe. We can also invest in the development of more original and exciting flavours. Our advice to any other companies who are aware of R&D Tax Credits, would be to look into it right away. There’s no risk to your business whatsoever and you could be missing out on money that would help your business to grow. Pick up the phone to Fiscale, they will definitely be able to help you!
Archie Powell, Managing Director, Decadent Vapours Ltd

The Conclusion

Decadent Vapours are continuing to work with Fiscale and their next R&D Tax Credits claim will be submitted at the end of their financial year. Some of the money received has been allocated to registering their products in the different European countries. The remainder will used for the development and testing of more innovative flavours. Furthermore, Fiscale have helped Decadent Vapours to create a framework for gathering and recording the information needed for future claims. This will make the process easier in and reduce the time taken to prepare future claims.

Could You Be Eligible?

If you would like to discover whether your business may qualify for R&D tax relief
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