As the definition of R&D for the purposes of the tax credit becomes more clearly defined, it is apparent that many activities undertaken to develop and improve manufacturing processes will qualify for the relief. However, few companies are claiming for the eligible activities occurring outside their product development or research centre.

As your engineers know, process excellence does not just happen. It takes engineering skill, experimentation and determination to overcome the technological challenges that stand in the way of improvement. All too often this type of development is not included when an organisation considers R&D tax credits and the potentially significant benefits available go unclaimed. Those companies that carry out in-house reviews in this area often find that differentiating the eligible from the ineligible routine activities can be extremely difficult. Experience is required to ensure you correctly identify eligible prototypes, the qualifying proportion of pre-production trials and eligible experimental production.

Examples of genuine qualifying areas include:

• The transition from new production development to the production line
• Manufacturing process improvements
• Production trials and prototypes

For more information download our brochure on R&D tax relief opportunities for organisations in the manufacturing sector (PDF, 79KB).

Learn more about R&D in UK manufacturing.