Apparel & Textile R&D Tax Credits

The UK textile industry is highly innovative, ranking no.3 in the world and no.1 in Europe for patent generation.

It’s not just clothing, shoes and accessories, textile R&D can be found in the upholstery fabrics we see everywhere and even in medical grade fabrics used by medical professionals.

From new dye formulas, fabric properties, SMART integrations, manufacturing techniques and more, this industry is rich in potential R&D tax credit qualifying projects.

R&D tax credits can offer textile and apparel businesses an additional tax deduction of up to 130% (SME example) off all qualifying innovation spend (changing to 86% on all expenditure on or after the 1^st April 2023 (View R&D tax credit changes)).

Apparel & Textile R&D Tax Credit Examples

Qualifying apparel and textile industry R&D projects must attempt to “resolve a scientific or technological uncertainty”. This is when a qualified professional cannot see a solution to a problem without exploratory testing and development.

The testing must attempt to fill a knowledge gap within the industry, and change or create a new product, process or service.

Textile Product Improvements

Qualifying R&D product projects include the testing and development of new or modified:

Textiles, fabrics or fastenings
Clothing, accessories, shoes, upholstery fabric and medical textiles
Fabrics that have specific properties, e.g., water-resistant, hypoallergenic, thermal or friction strength
Apparel with improved comfort, durability or performance
Dye formulas or screen-printing techniques
Clothing to meet new legislations, such as Personal protective equipment (PPE) clothing
Safety wear improvements, e.g., higher visibility, greater UV protection, greater resistance to dangerous substances, heavy impacts or sharp objects
Integrating technologies into designs, e.g. SMART textiles
Prototypes or test samples
Eco fabrics

Textile Process Improvements

Qualifying R&D process projects include the testing and development of new or modified:

Manufacturing process
Manufacturing equipment
Waste reduction process
Sustainable, environmentally responsible and ethical methods
Bespoke back-office or workflow systems and coding

Contact Amplifi, R&D Tax Credit Specialists

Get innovation and R&D tax credit advice and support from an expert team.

Apparel & Textile R&D Tax Credits

Apparel & Textile R&D Tax Credit Examples

Textile Product Improvements

Textile Process Improvements

Contact Amplifi, R&D Tax Credit Specialists

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