The word on the street says one thing – if your manufacturing business produces something that is already in existence, then you don’t qualify for R&D tax credits. People think that only those who are the true innovators can qualify for this government incentive. But that’s not true at all. It isn’t the new idea or the new product that make a company eligible for R&D tax credits. As the song goes, it ain’t what you do, it’s the way that you do it. Manufacturing is a large part of the UK economy.

R&D tax credits are a government incentive designed to reward the risk takers in business. If you come up with something that is new, then you might well have a claim on your hands. Just because someone else has a similar product, it doesn’t mean that you haven’t innovated.

Where Does R&D Fit into The Equation? 

Research and development is an integral part of many manufacturing businesses. They do it all the time, often without labeling it that. Making processes run more smoothly, changing a raw material or adapting an existing product all come under the banner of R&D tax credits. But it is where a new product is designed that the big bucks are spent. And it is there that the manufacturing business wants to make a claim.

You might think that if you come up with something that is already available on the market then you don’t have a leg to stand on when it comes to an R&D tax claim. But that’s not true at all. There are some pretty sound reasons why – and we’ll look at these next.

Why Might You Have a Claim

The rules on R&D tax credits are intricate and ever-changing. That’s why it is essential to work with someone who knows the score. At LUMO, we have been in the game for many years. We understand R&D tax credits and know when you can make a claim.

There are two main reasons why you might make a claim for R&D tax credits with a product that a competitor already has out and on sale –

1. The details of how the original was achieved might not be publicly available
2. The details of how the original was achieved might not be easily deduced

If both of these are the case, then you can make a claim for R&D tax credits. The work that you have put in to getting your new product off the ground, ready for market and on sale deserve credit. And the UK government is looking to reward you with cold hard cash. With Brexit and other considerations, they want to support UK industry to compete on the world stage.

If these details are withheld as a ‘trade secret’ businesses may potentially claim it as their own. Luckily, LUMO knows the ins and outs of how this can be done.

How LUMO Can Help 

There are always times in business when you need a little professional help. Whether that’s to do your taxes, sort out a legal issue or manage your computer network. You could try to learn all of these tasks yourself but ultimately it is the best option to speak to someone who can take the strain for you.

At LUMO we have been supporting manufacturing companies make the most of R&D tax credits. This incentive is perfect for the manufacturer – they just need to know how to access the funds. There are billions set aside to support you and businesses just like yours.

LUMO know the ins and outs of the system. This puts you on the fast track to success. If you submit the information to the HMRC in the wrong way, or miss out vital arguments, then your claim can fail. Even if it gets through the watchful eye of the tax man, an undercooked claim can leave you thousands upon thousands of pounds out of pocket.

LUMO are here to help you. We will look at your business, leaving no stone unturned as we assemble a report that persuades the HMRC to put their hand in their pocket and give to you. It all starts with a no-obligation chat. From there, it could be as little as 4 to 6 weeks and the money is in your bank account.

If you have a new product, then don’t worry if you are not the only ones producing it. An R&D tax claim could be closer than you think.