Engineering

Sector Overview – Engineering

Within the latest HMRC statistics on R&D tax credits, we can see that 19% of all claims made under the SME scheme, were for companies operating in the “Professional, Scientific & Technical” sector. This accounts for 25.5% of the total value of claims.

The average claim value is £71,648.

Research and Development Tax Credits within the Engineering sector

With engineering encompassing such a vast range of industries, ranging from aerospace to transportation, our lives are impacted daily by changes within this sector. As a result, research and development (R&D) is an essential element of day-to-day practice for those working in this field. 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 technological uncertainties within Engineering

Adapting existing technologies to suit a specific purpose

During the process of creating a new product or refining an existing one, engineers will often face technological uncertainties whenever working with new and innovative technologies. These often arise when deciding whether they will be suitable for the task at hand, or interact with existing components.

Choice of materials

Trial and experimentation will often be needed when choosing which materials to use for new products or components. Some materials will be unsuitable for the task at hand; for example, they may need to be waterproof, or be able to support a certain weight. Other times a material will be incompatible for the build because it can directly conflict with other materials that are in use.

Compliance with regulations

Differing global markets will have different rules and regulations that cover a host of areas. It’s these changes in standards that can create a number of uncertainties that will need addressing. Even when these are seemingly simple to implement at the start, these can require a great deal of research and development (R&D) to work. In some cases, these changes can result with the project bearing only a passing resemblance to the original design.

Integration of existing components

Creating products that work with each other can create some very hard to tackle problems, even when using “off the shelf” components. This is because it’s common for there to be substantial reworking of a product to ensure compatibility. If existing components aren’t available, engineers will need to develop these. Because of this, projects can need substantial experimentation and redesign to work as intended.

The service and commitment from the Fiscale team was excellent in achieving a successful conclusion to our R&D Tax Credits report.

John Deacon, Centre Stage Engineering Ltd.

Very Experienced, efficient and knowledgeable staff

David Bowie, D&G Mechanical Solutions Ltd.

Fiscale a very diligent and have always delivered on their services, with a 100% success rate for Eclipse.

Robin Purslow. Eclipse Presentations Limited

Engineering

Sector Overview – Engineering

Research and Development Tax Credits within the Engineering 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 technological uncertainties within Engineering

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

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