R & D Tax Credits – Manufacturing Companies
It has been a busy few weeks, the spotlight this month is upon a furniture manufacturing company which carried out regular product improvements experimenting with the use of new and cheaper materials in their product range.
The company’s approach to the work was to try out new formulations of plastic and timber and see how these bedded into the desired end product range. Not all of the new materials and methods were viable and the company disregarded about a third of its project efforts as not viable for commercial production.
The costs related to all of the experimental work were identified and following a successful claim have resulted in a valuable five figure tax repayment for the company.
The case was also interesting as it shows that prototyping is a vital clue to R & D activity. It also highlighted that what may appear as simple ‘design’ work can in fact be R & D.
Relevance: If your company is engaged upon new product development work, or using cheaper or ‘greener’ materials you should consider R & D.
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