Chartered Accountants
R&D – Packaging
Sector – Food and Drink, Packaging
Company Size – £4.5 – 5m Turnover
Qualifying Costs – £188,863
Our client is a company based in the East of Scotland that manufactures food snacks for supply to supermarkets and other retail and wholesale outlets. The company is an existing EQ client and the R&D work being undertaken was identified by our Audit team as part of their fieldwork.
What type of work does the company do?
The R&D work undertaken over a two-year period predominantly covered two main projects:
- The company sought to reduce their salt content to ensure their snacks met Scottish Government targets for salt reduction without compromising on taste.
- The salt and fat content meant that, when the snacks were being exported in containers, the traditional bags showed extensive leakage. The company experimented with a wide range of material to produce a non-leak bag.
What R&D work was completed?
In the food & drink sector, much of the R&D work is a process of trial and error where a range of materials, temperatures, ingredients and packaging variables are assessed, with each variable potentially affecting all of the others. This work was delivered in conjunction with the constant requirement to manage health and safety. The client’s new product team and production staff combined to produce a range of ground-breaking solutions for the company.
What was the outcome?
As a result of the R&D claim, our client received tax savings of £46,526.
