Chemicals

Sector Overview – Chemicals

Within the latest HMRC statistics on R&D tax credits, we can see that only 19.5% of all claims made under the SME scheme, were for companies operating in the “Professional, Scientific & Technical ” sector. This accounts for 26% of the total value of claims.

The average claim value was £72,260.

Research and Development Tax Credits within the Chemicals sector

Producers of chemical based products will know just how much testing takes place. As this is a sector based in the field of chemistry, this results in many of the uncertainties that they face, being science related. Eligibility for R&D tax credits centres around the two key areas:

The work must seek a scientific or technological advance beyond existing capabilities in the field.

There must be a scientific or technological uncertainty. This is where the solution, or method of arriving at the solution, is not readily apparent to an appropriately skilled competent professional

Examples of scientific and technological uncertainties faced in the chemicals sector

Deciding which ingredients to use in the formulation

When researching new products to develop or to improve, exact formulations and precise quantities are often unknown. As a result, it’s often essential for companies to experiment with different ingredients that are used for each new formulation.

Developing the formulations for products

Each product being developed will need a great deal of research and development (R&D), before it’s ready for market. As a result, many of the scientific uncertainties will arise during the formulation phase. This is because products needs a precise ratio of raw materials, with any slight alteration directly impacting the properties of the product. This can cause the batch to be unsuitable for production.

Stability testing

Following the successful development of a new product, some technological uncertainties can arise during testing. This is because companies need to ensure that each new product is safe for sale and also maintains its performance. As there are such a large number of variables to consider, a thorough process of trial and experimentation is often needed.

Changes in legislation

Following a product launch, companies can still face new challenges. These can occur through changes to legislation which can limit the use of certain ingredients that are used in a formulation. As a result, the formulation will need to be reworked.

Fiscale came recommended by an industry colleague and we knew we had an R&D case, but underestimated the time we all put into new developments. It was only by thinking it through with Fiscale, during their first visit, that the reality shone through. We all get paid anyhow, so our “New-Stuff” efforts were absorbed in the day to day tasks and totally underestimated. Thanks for shining the light guys!!!

Mark Ramsden, CPC Chemicals

Chemicals

Sector Overview – Chemicals

Research and Development Tax Credits within the Chemicals sector

The work must seek a scientific or technological advance beyond existing capabilities in the field.

There must be a scientific or technological uncertainty. This is where the solution, or method of arriving at the solution, is not readily apparent to an appropriately skilled competent professional

Examples of scientific and technological uncertainties faced in the chemicals sector

Do You Think You May Be Eligible?Let's Talk

Do You Think You May Be Eligible?
Let's Talk