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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:

  1. The company sought to improve their food manufacturing process in order to supply their products in greater volumes without compromising on quality.
  2. 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?

  1. 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.
  2. 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.

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