Manufacturing and Engineering

Common examples of product and process development projects that may qualify for R&D tax relief include:

• 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; or,
• streamlining manufacturing processes through automation.

In terms of qualifying tasks, the following activities 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 specification or other documents to explain and support the R&D project and advancement;
• testing the product, process or software;
• planning and managing projects.

In addition, certain indirect support activities may qualify for R&D tax relief, such as:

• administration, finance, and personnel services specifically required to support R&D activities;
• training to support R&D.

You can claim relief on costs that have been expensed through the Profit & Loss account and in certain circumstances you can also claim capitalised expenditure (providing that the assets purchased have been classified as Intangible Assets). The main areas of costs that can be claimed are:

• staff costs (gross pay, employer's NI, employer's pension contributions, and reimbursed expenses relating to R&D activities);
• agency workers (externally provided workers);
• subcontractors/freelancers;
• software license costs; and,
• consumable items (heat, light and power, and materials and equipment used or transformed by the R&D process).

It is not uncommon for an R&D team to consist of many individuals from different parts of the business. Your R&D project team may include the R&D Manager, a Lead Developer, Engineers, Project Co-ordinators, Quality Control and Testing specialists, and Cost Accountants, as well as members of the senior management team.

By profiting from our specialist knowledge and experience, you can be sure of maximising your R&D tax relief claim. As a rule, Myriad Associates submit R&D tax relief claims that are up to three times higher than in-house prepared claims or those filed by generalist accountants.

• We handle your R&D claim from start to finish, taking up just two to three hours of your time.
• We can maximise your R&D claim because our expert consultants can identify your qualifying projects and all your eligible expenses.
• We write technical reports describing your projects to support your claims.
• We make sure HMRC handles your claim promptly, because of our right-first-time approach and because of our outstanding relationship with R&D tax inspectors.
• Our 5-Step Claim Process is simplicity in itself, so you always know where we are with your claim.

• 100% success. We have successfully claimed R&D tax relief for all our clients, for over ten years, and without exception.
• An unbeatable offer. Confident of delivering a winning service, we offer our services on a success-only basis.

You can download our information sheet on R&D Tax Relief for Manufacturing & Engineering Companies.