Food & Beverage R&D Tax Credits

The UK food & beverage industry in the UK’s largest manufacturing sector, and SMEs account for 98% of it according to the FDF.

Being innovative with the products and how they are produced ensures businesses within this sector remain competitive locally and globally, and they meet government legislations.

Food & beverage R&D tax credit qualifying projects could include creating new varieties or flavours, it could involve changing products to improve shelf-life, meet new trends or industry regulations (e.g. less sugar), while innovative manufacturing improvements could reduce costs and waste.

R&D tax credits can offer food & beverage 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)).

Food & Beverage R&D Tax Credit Examples

Qualifying food & beverage 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 explorative 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.

Food & Beverage Product Innovations

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

Product varieties, flavours, recipes or ingredients
Shelf-life improving ingredients or package design
Products that fulfil new trends, such as meat-free, high protein or organic
Products that fulfil specialist dietary requirements, such as gluten free or nut free
Products that meet new industry regulations, such as reduced sugar or salt
Taste, texture or nutritional values
Prototypes for testing

Food & Beverage Process Innovation

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

Production machinery and equipment
Methods to scale up production
Cost and wastage reduction methods
Bespoke back-office systems or coding

Contact Amplifi, R&D Tax Credit Specialists

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

Food & Beverage R&D Tax Credits

Food & Beverage R&D Tax Credit Examples

Food & Beverage Product Innovations

Food & Beverage Process Innovation

Contact Amplifi, R&D Tax Credit Specialists

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