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Food & Drink

The food and drink industry is full of research and development activity, achieving healthier products, sustainable processes, and reduced food wastage. The Research and Development (R&D) activities which qualify in the food & drink industry are usually surrounding the ingredients and ratios. The trial and testing of refrigeration and shelf life are also prevailing factors of uncertainty when embarking on a new project. R&D enables the exploration of new ingredients, facilitating the development of healthier and more sustainable food options while enhancing product quality and taste. 

Overview

Qualifying at a Glance

R&D in the food & drink industry is all about making things better. It helps companies create new flavours, textures, and healthier options while also making sure that food is safe to eat and produced efficiently. It involves finding new ingredients, coming up with new recipes, improving how food is made, and taking care of the environment. A few examples might include:

  • Reducing food waste  New products, packing, and processes that extend the shelf life of food products, or allow for freezing. 
  • Improved food quality – The introduction of digitised processes into the manufacturing of food helps to track production at every stage of the journey; from the purchasing of ingredients to the dispatch of the final product. 
  • Adaptation of recipes and processes – Considering food intolerances, religious practices regarding food, and diets such as veganism into recipe creation for greater accessibility and food choice for all.
  • Increased sustainability of the food industry Prioritising eco-friendly manufacturing, distribution choices, and packaging choices such as biodegradable and recyclable.
  • Enhanced taste and health benefits – Refining the recipe formulation to create food that simply tastes better than before whilst reducing the sugar content of the original recipe. 
  • Reliable ingredient sourcing  In the midst of issues about supply chain management following world crises, a new ethical way of sourcing ingredients would be considered R&D. 
Fruits are placed in plates.

You are in a strong position to qualify for R&D claims if you have:

Created something new
Designed a different process
Improved an existing product in an appreciable way

Ask Yourself

  • Did you conduct R&D activities to develop new products, processes, or services or to improve existing ones?
  • Did the R&D activities involve the resolution of technical uncertainties or challenges that could not be solved by using existing knowledge?
  • Did your products or services require extensive trial and testing throughout the creation process?

If you are answering yes, you may qualify to claim back up to 33.4% of eligible R&D expenditure through HMRC’s R&D Tax Relief Initiative. Contact one of our R&D tax credit specialists to seek further advice on how to proceed with your R&D claim.

The claim process

We understand the complications that can often arise when completing an R&D claim, not to mention the significant amount of time it can consume, diverting your attention from driving your innovation forward. That's why we have streamlined a transparent and hassle-free process that follows a step-by-step approach from start to finish.

Throughout your R&D claim process, we maintain open lines of communication tailored to your preferences. Once we have compiled comprehensive technical and financial reports, we take the responsibility of submitting them and proactively follow up with HMRC, leading the communication on your behalf. Often, our next contact with you brings the exhilarating news of success and positive outcomes.

Step 1

We'll gain your authorisation via our client instruction form/NDA. This will enable us to discuss your R&D activities along with your current tax position.

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Step 2

We'll analyse the profit & loss (P&L) statement of the business while facilitating your technical call. This step aims to determine whether your case is feasible from both technical and financial perspectives.

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Step 3

Once our experts are confident that your case meets the R&D eligibility criteria, we will then gather all the required technical information and financial documentation according to HMRC's standards to support your case.

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Step 4

At this stage, we initiate a stringent compliance procedure that we have developed in-house to audit your R&D claim application. We verify whether it meets the defined standards before submitting it to HMRC to ensure a positive outcome.

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Step 5

After conducting a comprehensive review of your R&D claim, including all required documentation, the application will be forwarded to HMRC for further processing.

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Step 6

Our team maintains continuous contact with HMRC regarding your case. If any queries arise, we address them on your behalf using a highly systematic approach to maximise your outcome while minimising any delays in your repayment.

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Get Started

Our hassle-free and streamlined process is waiting for you to get started and to make you feel confident throughout your R&D claim application.

Your guide to
R&D tax credits

Gain access to valuable insights from our experts in R&D tax credits, empowering you with essential information to ensure a successful claim, ultimately injecting funds back into your account.