As the definition of R&D for the purposes of the tax relief becomes more clearly defined it is apparent that many activities undertaken to develop and improve processes in the printing and packaging sector will qualify for relief. Very few companies are fully claiming the relief however due to a misconception that they are not involved in R&D. Eligible activities for this purpose are actually much wider than many people believe and so opportunities are being lost.

What's the benefit
Any development work where your personnel face considerable technical challenges, provided the solution is not readily available or can be deduced by a competent professional working in the field, has the potential to qualify for the enhanced tax relief. This takes the form of at least a 7.5% absolute cash reduction in taxes, subject to the availability of profits, for eligible revenue costs. An immediate deduction is also available for capital R&D expenditure. This gives a significant cashflow benefit when compared to other capital allowances where, at best relief is claimed over 10 years and at worst not at all.

For more information, download our brochure on R&D tax relief opportunities for printing and packaging companies (PDF, 71KB).