Barriers to innovation: challenges faced in the manufacturing Sector
5 Minute Read
Claiming research and development tax credit is easier than you think, especially with the help of companies like Lumo who specialise in just that. We are here to debunk those excuses which are stopping you from reaping the rewards of this fruitful UK government incentive.
‘My company is not in the right industry’
Businesses in all industries are eligible for R&D Tax Credits, however it is what they are doing with their time and money, and how innovative this is which makes them eligible or not.
Companies in the manufacturing and engineering industry are ideal candidates for claiming Research and Development Tax Credits, because it’s highly likely that they are already investing in new product development, new processes or enhancing existing ones on a regular basis.
If your company is within this industry and you are not already claiming this tax relief, contact Lumo today to find out if you are eligible.
‘I’m not sure if my business would qualify for R&D Tax Credits’
R&D Tax Credits are based on what a business is doing with its time and money, and how innovative this is. Basically if your company is doing or has recently done any of the following activities, it may be eligible for Research and Development Tax Credits.
- New product development.
- New process development, for example finding better ways to make, store or distribute products.
- Enhancing existing products, for example changing their formulation.
Businesses in the manufacturing and engineering industry are ideal candidates for claiming Research and Development Tax Credits because it’s highly likely that they are already doing many of the above on an ongoing basis.
Here is a simple video on what makes a business eligible in the manufacturing and engineering industry. If you are still unsure whether your business activities qualify, simply contact a company like Lumo and they will be able to clear this up for you.
‘It is a lot of work!’
The only way you are going to find out if you are eligible for this injection of cash from the government is by making a claim, either yourself or through a specialist company.
It is quite easy to make a claim yourself, but it is even easier to make a claim through a company like Lumo.
This is because companies like Lumo have the specialist knowledge and experience needed to present the best case possible to the tax man and make sure you get EVERYTHING you are entitled to. They have developed a tried and tested process over a number of years, and can have you reaping the benefits of your claim in as little as 6 weeks!
‘I might get fined if I do it wrong’
When making a R&D Tax Credit claim through a specialist company like Lumo, they take the uncertainty and risk from the process. There are always going to be businesses who fraudulently claim from the government, and this means that if anything is a bit off with your application it may be investigated by the tax man.
With companies like Lumo using their expertise and experience to put forward your case in the best and most thorough way possible, there is no need to worry about being penalised.
‘I wouldn’t get very much money back anyway’
On average, a repayment of £35,000 is claimed on behalf the clients of Lumo, the Research and Development Tax Credit specialist. Therefore, is it definitely worth checking if you are eligible. For every £1 of qualifying costs you claim for, you get on average 33p back, that’s a substantial third you are getting back from costs you would be incurring anyway in your quest to innovate your business.
Payments can be claimed retrospectively for up to two years after the financial year within which the R&D activity took place, so if you’re worried you’ve simply missed out, don’t.
Please click the download button to the right to get your free guide to answer any questions on R&D specifically to your Manufacturing & Engineering business.