The BPIF have teamed up with R&D Tax specialist Garbutt + Elliott to help members identify and claim tax credits for any development work undertaken.
Has your company:
- Developed a new product or improved an existing one?
- Made or attempted a significant improvement to your production process?
- Created an innovative or unique piece of software?
Then you could be eligible to make a Research & Development ("R&D") tax claim. The benefits for your company are:
- Around 45% effective tax relief of R&D qualifying costs, or
- Around 33% of R&D qualifying costs as a cash repayment if you are loss making.*
You must be seeking an advance from the R&D, with uncertainty over the chance of success, and the answer must not be obvious to a competent professional of their field. Failed projects can also qualify.
Examples of potential print industry R&D might include:
- Developing new inks that are less hazardous, longer lasting
- Developing new printing circuits with conducting inks
- New ways of sealing packages through hot/cold methods
- Manufacture of cardboard boxes which are stronger and more water resistant.
- Improvement of key technology, for packing, litho, rotogravure etc
- Reducing paper wastage such as improvements in your production line processes. For example reduce mangling or slips by improvements on "joggers", and the speed/acceleration of cardboard through the line such as moving from "fast", to slow" and accelerating to "very fast".
*The small and medium sized relief applies if you have less than 500 staff, a turnover of less than EUR€100m, or balance sheet of less than EUR€86m. If you are under the large company R&D scheme then instead the relief is worth an extra 8.9% of R&D qualifying costs.
The acquisition of advanced third party print or packaging equipment is not itself R&D, though it could be if it forms a radical change to your process and you have to investigate ways of getting the best out of the new equipment. Staff and consumables costs for this bedding in which are capitalised in the accounts can still be claimed as R&D.
HMRC don't keep statistics on print industry R&D claims, though it is known that around 26,000 R&D claims are made nationally every year by UK firms across all industries. The government have signalled that R&D is fulfilling its objectives and is here to stay.
What costs get relief?
The main qualifying R&D costs associated with solving these scientific, technological or materials uncertainties generally fall into one of the following headings:
1. Staff costs, including company pension and employer national insurance costs
2. Consumable items (materials, power, fuel and water);
- Capital Allowances Over 50% of commercial property owners have not made a capital allowances claim – are you one of them?
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