Sector Overview: Vaping
R&D Tax Credits for the Vaping sector

Within the latest HMRC statistics on R&D tax credits, we can see that 19% of all claims that are 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 was £71,648

Research and Development Tax Credits within the vaping and e-liquids industry

Evolution comes in many forms, with the vaping industry being no different. For companies to build and maintain a competitive business within this sector, they are constantly needing to innovate. This is achieved by formulating new recipes and for for their e-liquids. For others it’s by developing and improving the atomisers needed to dispense the products to the end consumers.

Being eligible for R&D tax credit centres around two key areas. You need to be either:

Producing new or improved products.

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

Because developing new e-liquids takes extensive trial and experimentation, there is often a lot of research and development (R&D) taking place. Following the initial development of the concept, the new products progress to consumer testing and a full chemical analysis. Once a product paseses these stages, it is ready for launch. Once a product is on the market, it’s not uncommon for there to be long term adjustments to the products, once they have become available to consumers.

Examples of technological uncertainty in the vaping and e-liquids industry 

Testimonials from our Vaping & e-Liquid clients

  • We were really pleased with the cheque we received from HMRC. It will enable us to expand export sales in Europe and, of course, invest in the development of more original and exciting flavours.

    Pick up the phone to Fiscale, they will definitely be able to help you! There’s no risk to your business whatsoever and you could be missing out on a sum of money, that would help grow your business.

    Archie Powell, Managing Director, Decadent Vapours Ltd

Sound like familiar challenges?

If the examples given above ring true for your vaping & e-liquid company, it is highly likely that you are eligible to claim R&D tax credit relief. Give our friendly team a call today to find out more