It doesn’t sound like it could possibly be true. A new cake recipe might be something your food and drink business comes up with to won new customers or delight the old ones. So, in that way, it is definitely designed to generate more income. But it costs up front to look at any of the changes you make to your business. And it isn’t just a new cake recipe that could save you money. Let’s take a look at some specific examples here, while remembering that not all new recipes are bound to be a success.
A New Cake Recipe (Or Any Other Recipe for That Matter)
This is about more than just thinking of a recipe and the new product appearing in front of your eyes! For a food and drink company, you need to think about several things –
- Sourcing ingredients and how much they cost
- Focus groups or product testing to see if it will sell
- Deciding the packaging and where it fits in your range
There are other factors here too, and all of this together means you carry out research and development. That’s where the UK government is looking to reward you. And LUMO have a longstanding record of helping food and drink businesses succeed in claiming this cash.
New Recyclable Packaging
We are all moving towards a leaner, greener world. Whether it is a love of the planet or the fear of taxation, many food and drink businesses are pushing ahead with plans for recyclable or even compostable packaging with the likes of London Bio Packaging.
We have worked with enough food and drink companies to know that new packaging ideas don’t grow on trees. You will research and test the ones that work best for your product. This takes time, effort and money. R&D tax credits have been set up reward you for all this investment. LUMO have a 100% success rate in claiming these for our clients.
Every now and again, a food or drink company needs a new piece of kit. This could be to replace an outdated version, to become more efficient or to increase capacity. Slotting in something new takes time and the teething problems that might occur can cause delays.
The little problems that happen here are all part and parcel of research and development. The UK government and the HMRC classify these as uncertainties. And they are ready to reward any food and drink business that deals with these uncertainties.
For example, a new machine that packages and labels your product could need accommodated by moving other items around your premises. These changes can lead to an R&D tax claim.
Longer Shelf Life
Many of the ideas above related to physical changes to a business. But procedural changes to your food and drink business can also qualify for R&D tax credits and save your business money. If you change the way you work, then you can be eligible for this incentive.
If you add a new process to improve the shelf life of your product then the way this is embedded into what you already do can qualify you for an R&D tax claim. The average size of a claim we make on behalf of our clients is over £50k, so this isn’t to be sneezed at.
A New Flavour
As a food and drink business, you will always be looking for new ways to delight your customers. A new flavour launch is an exciting way to get in front of more people as well as getting your existing clients to buy more. Changing flavour, like a new cake recipe, will help you stay at the forefront of people’s minds. And it will also leave you with an R&D tax claim.
If this change has happened at any stage in the last 3 years then we want to speak to you right away. With the new tax year fast approaching, now might be the time to make a difference to your business.
Low Sugar Formula
If the sugar tax has got you thinking about the amount of the sweet stuff you have in your product then you might be ready to make a change. Or perhaps you have a soft drink product and have already changed the formula. Lowering sugar, fat, salt or any other ingredient means you run the risk that the final product doesn’t taste the same. This is a commercial risk that you have to take if the government is legislating against what you already do.
We can help you make a claim if you have made changes like this. Just drop us a line and we’ll be there for you.