Specialist R&D Tax & Grant Funding Advisors

Manufacturing and Engineering

If your R&D project either resolves a scientific or technological uncertainty, manufacturers and engineers could claim a tax rebate or cash repayment for up to 33% of the costs associated with their R&D work.

Find out if you're eligible

Manufacturing and Engineering

Guide Overview


Find out about R&D tax credits for manufacturing & engineering companies, whether you’re eligible, why it’s worth filing a claim and how Myriad Associates can help.

What are manufacturing & engineering R&D tax credits?


Manufacturing & engineering R&D tax credits is a government-funded incentive designed to encourage manufacturers and engineers to embark on innovative R&D projects.

The projects that result in the design, build and development of new, innovative products, processes and services or the enhancement of existing ones are eligible. If the R&D project resolves either a scientific or technological uncertainty, manufacturers and engineers could claim a tax rebate or cash repayment.

What are manufacturing & engineering R&D tax credits UK
Do I qualify for manufacturing & engineering R&D tax credits UK

Do I qualify for manufacturing & engineering R&D tax credits?


Your project doesn’t even need to be successful to qualify for R&D tax credits.

To qualify for R&D tax credits, your R&D project must either attempt to resolve a scientific or technological uncertainty or seek to uncover knowledge that doesn’t already exist in the manufacturing or engineering industry.

What type of costs are eligible?


The average R&D claim that manufacturers and engineers receive is £129,000. This covers costs like:

  • Employee wages, NI, pension contributions and expenses
  • Sub-contractors, freelancers or agency workers
  • Subcontracted development or testing
  • Consumables like light, heat, power and materials relating to the project
  • Software costs eg. CAD and 3D modelling software

To find out what type of projects might be eligible for R&D tax relief, see the FAQs at the bottom of this page.

What type of costs are eligible UK

"Myriad’s understanding of the industry is excellent. They were able to successfully identify projects we didn’t even think would qualify as R&D and secured us a combined R&D Tax Relief savings of £57k."

Simon Sinclair

Technical Project Leader at N.D. Precision Products

How we can help with your R&D tax credit claim


With increased HMRC scrutiny on every R&D claim, profiting from our years of specialist R&D tax credit knowledge and experience can help increase your chances of a successful claim. Ofcourse no claim is guaranteed and so our experts will analyse your project from a scientific & technological perspective to ensure it qualifies under the scheme before proceeding any further.

About Myriad Associates
R&D Tax Credits
  • Confident of delivering value to our clients, we offer our R&D tax services on a success fee-only basis.
  • We handle your R&D tax claim from start to finish, with the aim of taking up as little of your time as possible
  • Our expert consultants can identify all of your qualifying projects and all your eligible expenses, including costs often missed by accountants and in-house teams.

Does your business qualify?

Speak to our experts today to see if your activities qualifies.

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Tax Cloud, UK's #1 R&D Tax Credits Portal


Tax Cloud is our online R&D tax credit portal and was the first of its kind in the UK.

Ideal for small & medium-sized businesses who require guidance making a robust and maximised R&D claim but do not require full consultancy.

Visit Tax Cloud

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Our results

  • We have a strong track record spanning 20+ years delivering R&D tax credit claims
  • We are a trusted and respected advisor to our many delighted clients
  • We have achieved exceptional results by resubmitting R&D claims that were originally filed by the client. 
  • Our experts have delivered robust R&D claims for companies in manufacturing & engineering, pharmaceutical, software, supply chain, digital design, immersive technology, food and beverage and many more.

Frequently asked questions


The government’s definition of a qualifying R&D project is broad. Some examples of eligible manufacturing and engineering projects include:

  • Developing innovative designs for bridges and roadway structures
  • Improving or developing new construction equipment
  • Building new, improved or bespoke heating and air conditioning systems
  • Innovative product development using computer-aided design tools
  • Development of second-generation or improved products
  • Tooling and equipment fixture design and development
  • Developing unique computer numerical control programs
  • Designing innovative programmable logic controllers
  • Designing innovative manufacturing equipment
  • Prototyping and three-dimensional solid modelling
  • Development of computer models
  • Designing and developing cost-effective and innovative operational processes
  • Integrating new materials to improve product performance and manufacturing processes
  • Evaluating and determining the most efficient flow of material
  • Designing and evaluating process alternatives
  • Designing, constructing, and testing product prototypes
  • Increasing ease of operation or suitability of manufactured products
  • Developing processes that would meet increasing regulatory requirements
  • Streamlining manufacturing processes through automation
  • Digitising manual machining processes
  • Developing new forms of environmentally friendly packaging
  • Developing specialised tools to meet high-specification product designs
  • Changing an existing production process to comply with changing regulations
  • Integrating new technologies with legacy back-end systems

Tasks and activities, such as the below, would be considered eligible for R&D tax credits: 

  • Defining technical objectives
  • Identifying uncertainties
  • Feasibility studies
  • Reviewing new and competing technologies
  • Analysing, designing and developing the technology
  • Producing technical specifications or other documents to explain and support the R&D project and advancement
  • Testing the product, process or software
  • Planning and managing projects
  • Support activities that directly relate to the R&D project such as administration, finance, training and personnel services

You can submit an R&D tax relief claim at any time up to the first anniversary of the filing due date of the company tax return for the accounting period in which the claim is made (paragraph 83E(1) of Schedule 19 to the Finance Act 1998). This means that a business can claim for R&D tax relief going back 2 accounting years. The claim can be made in a company tax return or as an amendment to it.

HMRC works to process applications for R&D Tax Credits within 28 days. However, the processing time required for HMRC to review and consider an R&D Tax Credit claim depends largely on the nature of the claim itself in addition to the complexity of a company’s structure and its accounting. Even the time of year can make a difference, with peak accounting times such as March and December being particularly busy and resulting in slower processing times.

HMRC will follow the guidance supplied in their Statement of Practice SP 05/01 to deal with late claims. The success of these appeals will depend on the claim itself. HMRC will rarely allow a late claim if the claimant simply didn’t have enough time or because they weren’t aware of the R&D tax relief scheme.

An R&D team could consist of many individuals from different parts of the business. It may include people such as:

  • An R&D Manager
  • Engineers
  • Project Co-ordinators
  • CAD Engineers
  • Quality Control
  • Testing specialists
  • Cost Accountants
  • Senior Management

Manufacturing & engineering R&D tax credits is a government-funded incentive designed to encourage manufacturers and engineers to embark on R&D projects that result in the design, build and development of new, innovative products, processes and services or the enhancement of existing ones. If the R&D project either resolves a scientific or technological uncertainty, manufacturers and engineers could claim a tax rebate or cash repayment for up to 33% of the costs associated with their R&D work.

To qualify for R&D tax credits, your R&D project must either attempt to resolve a scientific or technological uncertainty or seek to uncover knowledge that doesn’t already exist in the manufacturing or engineering industry. Your project doesn’t even need to be successful to qualify for R&D tax credits.

The average R&D claim that manufacturers and engineers receive is £129,000. This covers costs like:

  • Employee wages, NI, pension contributions and expenses
  • Sub-contractors, freelancers or agency workers
  • Subcontracted development or testing
  • Consumables like light, heat, power and materials relating to the project
  • Software costs eg. CAD and 3D modelling software
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Step 1 of #

Is your business registered for Corporation Tax in the UK or are you a partnership with corporate owners?

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Have you developed new or improved existing products, processes or services in the last 2 accounting periods?

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Have you incurred any R&D costs on staff, contractors and consumables?

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Does your business have fewer than 500 staff, and either: A turnover of no more than €100 million; or Gross assets of no more than €86 million?

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Sorry, you must be a UK limited company or be a Partnership with corporate owners to be eligible for R&D tax credits.

In order to qualify for R&D tax credits you must be seeking to advance science or technology within your industry. As you’ve not developed any new or improved any existing innovative tools, products or services, and not re-developed any existing products, processes or services in the last 2 years. It is unlikely you have any qualifying activity. If you’re unsure, email or call us and we’ll help clarify.

In order to claim R&D tax credits, you need to either employ staff or spend money on contractors, consumable items and other items. If you’re unsure, email or call us and we’ll help clarify.

Thanks for that!

Congrats!! Based on your previous answers, you will qualify for the SME scheme. If you’d like some help maximising and securing your claim, please email or call us.

Congrats!! Based on your previous answers, you will qualify for the RDEC scheme. If you’d like some help maximising and securing your claim, please email or call us.

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