Chartered Accountants
R&D – Food and Drink
Sector – Food and Drink
Company Size – £4-5m Turnover
Qualifying Costs – £125,089
Our client is a family-run business, producing bakery and butchery products for selling in their own shops, as well as supplying to retailers. The company was an existing EQ client, with the R&D opportunity being identified through the Engagement team’s knowledge of the company’s activities.
What type of work does the company do?
The client’s R&D claim incorporated two different projects:
- The company sought to improve their food manufacturing process in order to supply their products in greater volumes without compromising on quality.
- At the same time, the company wanted to develop a unique range of bakery products that could compete with global competitors in both quality and cost.
Why does this qualify for R&D?
- Having purchased a piece of machinery that could produce their products in greater volumes in order to meet demand, the client adapted their traditional handmade recipes to ensure their mass-produced products did not lose their taste and quality.
- Through a lot of research, testing and trial and error, our client developed a range of bakery products which offered unique flavours at a much lower cost than their global competitors.
What was the outcome?
As a result of the R&D claim, our client received tax savings of £35,000.
