Research and Development Tax Credits within the Manufacturing industry

The manufacturing sector makes up a large part of all R&D Tax Credits claims. With this being such a wide reaching industry, many will face the majority of their technological uncertainties during the design phase.

Eligibility for R&D tax credits centres around the two key areas of either:

Producing new or improved products.

Design and development of a product involving some degree of uncertainty for which the answers were not obvious.

Manufacturing comes in many shapes and sizes, however, often uses standard methods found within the industry. However, in some cases, there will be a need for developing new materials or techniques. It’s these activities that can potentially become claimable elements for R&D tax credit.

Examples of technological uncertainty in the manufacturing sector

Choice of materials

Before manufacturing a new product, it’s essential for to select to right material. This is because it affects the structure and functionality of the finished piece. Materials need to be relevant to the brief, for example, they might need to be fire retardant, waterproof, or non-conductive. This in turn can cause many uncertainties and as a result, the choice of materials may need to be reconsidered.

Modifying or creating bespoke components

We’ve all been there, at the start, a project may seem very simple and straightforward. However, we then discover that a substantial amount of work is needed. Even when customising “off the shelf” or existing components, a great deal of uncertainty can arise. This is because there can be uncertainty on how these various components will react together.

Strength testing

All materials used will have different properties, with fatigue often only presenting itself under certain conditions or usage. Therefore, it’s essential to conduct thorough testing to ensure that the material is suitable. If a manufacturer is required to rethink this choice, or provide additional structural support, this could be qualifying R&D.

Prototype evolution

When creating a new product, prototypes are often needed. This is because it’s only once one has been developed, that functionality can be ensured. At this point manufacturers may see that the product has a fault and will need further design.

Testimonials from our Manufacturing clients

The team at Fiscale have taken our leg work out of our R&D tax refunds. They are thoroughly professional, friendly and helpful. Having developed a clear understanding of our business, the team prepared all the necessary reports and documentation for each claim, which has allowed us to maintain our focus on our growth, via a cohesive research and development plan. They have advised us within our R&D function, both retrospectively and as we move forward. I highly recommend them.
Charlie Dalton, Smart Garden Offices
Clear concise and well actioned with regards to all work carried out for us.
Paul Best, Director, Off The Wall Coverings
The service and commitment from the Fiscale team was excellent in achieving a successful conclusion to our R&D Tax Credits report.
John Deacon, Director, Centre Stage Engineering Ltd.
I couldn’t recommend Fiscale highly enough, their professionalism and knowledge in this area is amazing. Thank you!
Terry McCarthy, Director, DJH Group
Very professional and understanding of our business, to ascertain the best process and procedure to ensure our claim captures all relevant costs and assumptions.
Myles Andrews, Bolton Metals Ltd

Sound like familiar challenges? Call Fiscale Today!

Why not contact us today to discuss your business’ R&D tax relief? It only takes our team around 20 minutes to determine if you are eligible or not.

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