UK food manufacturers missing out on R&D tax relief

According to the results of a new Censuswide survey of 500 senior managers and business owners published by specialist tax relief company Catax, three quarters of small and medium-sized British firms in the food manufacturing industry are likely to be eligible for Research & Development (R&D) tax relief.

A significant majority (74%) of senior managers and business owners at smaller UK food manufacturing firms say they’ve spent time and money ‘developing a new product or business process over the past three years’ — the basic requirement for an R&D tax claim.

This means that around three quarters of businesses involved in food manufacturing, from producers to packaging companies and their suppliers, could be due a sizeable tax windfall.

However, more than a third (36%) of senior managers and business owners at smaller UK food manufacturing firms have never even heard of R&D tax relief. Of those who have, one in three (34%) incorrectly believe it is restricted to specialist hi-tech science or pharmaceutical companies.

Mark Tighe, CEO, Catax, comments, “In far too many cases, the Research & Development tax relief available to companies in the food manufacturing sector is being overlooked, and often at great cost. This is especially the case with smaller companies, which typically don’t have access to the tax resources and expertise of bigger firms.

“With raw ingredients getting more expensive by the day, the importance of this sort of tax relief has never been more apparent. In our experience of working with companies in this sector, claims can run into hundreds of thousands of pounds, which shows how crucial it is that firms seek advice about the tax relief they could be due.’’