Optimised R&D tax claims for manufacturers
EmpowerRD makes it quicker and more efficient for manufacturing businesses to successfully claim R&D tax credits.
The manufacturing sector receives more R&D
credits than any other.
The manufacturing sector receives more R&D credits than any other.
of claims
average SME claim
average RDEC claim
claimed
Case Study
Key Considerations
What to look out for when submitting a claim for your manufacturing business.
Activities manufacturers often miss
from their claims
Activities manufacturers often miss from their claims
Process Developments
The majority of claims in manufacturing tend to be in development rather than research, ie in using novel methods to improve their current production processes. However many manufacturers underestimate the extent to which their process developments can qualify for R&D.
ERPs
Due to the increasing digitisation of manufacturing, manufacturers are increasingly deploying large-scale ERP software such as SAP and Oracle. These deployments may involve significant customisations which could qualify as R&D.
Integrating New Technology
While many manufacturers will claim for the development of a new technology they may overlook the process of integrating that technology into their older systems or products. This integration process may be complex and require significant expertise to complete.
Common complications from
manufacturers’ claims
Common complications from manufacturers’ claims
Fixed Assets
The costs incurred from R&D should, in most cases, be included in Profit and Loss account. Manufacturers typically have large Fixed Assets, which may be engaged in the R&D process, but cannot be claimed for under the scheme’s current rules. There are some exceptions for Intangible Assets, which we can advise on.
Directors’ Remuneration
In manufacturing the question of directors’ remuneration often arises. Many manufacturers may wish to remunerate their directors with dividend payments for the individual’s personal tax benefit, however dividend payments are not claimable under the R&D tax credit scheme. If the director is heavily involved in the R&D then it may make more sense to pay the director a salary. This should be evaluated on a case-by-case basis.
Selling Prototypes
The development of prototypes is often a fundamental part of the R&D process for manufacturers. However, if that prototype is later going to be sold (eg the first version of a bespoke machine later sold to a client), then its development cannot qualify for R&D.
Why companies switch to us
Tax advisors charge high fees as they spend lots of time doing low value data collection at their convenience. Our Combination of the best RD tax advice with technical know-how gets you better results and a more convenient service at a lower price.
“EmpowerRD make it easier and cheaper
for companies to claim R&D tax credits”
