Jeffreys Henry LLP secures R&D Tax Relief for Organic Skin Care Manufacturer

Research and Development (R&D) Tax Specialists at Jeffreys Henry LLP have secured over £30,000 in R&D Tax Relief for a Soil Association certified skin care manufacturer.

Introduced by the UK Government in 2000, R&D Tax Relief is a key part of the government's strategy to support innovation in the UK by allowing businesses to reclaim some of the money they have spent on developing a new, or improving an existing, product, service or processes. Read more on the HMRC website.

R&D TAX RELIEF CAN BE SUBSTANTIAL

Loss-making companies can claim an R&D Tax Credit repayment from HMRC of up to £33.33 for every £100 spent on qualifying R&D expenditure. 

Profit-making companies can claim R&D Tax Relief which reduces their corporation tax bill by up to 230%. 

Qualifying R&D expenditure includes staff costs, subcontractors, ingredients, materials and equipment used for testing, utilities (power, water and fuel) and computer software.

Our research has indicated similar skin care and makeup brands are missing out on thousands of pounds worth of R&D Tax Relief that can help to fund the cost of new employees, equipment or re-invest in further innovation.

Despite the benefits, a very small number of beauty, skin care and cosmetic brands have ever submitted a claim to HMRC because of its perceived complexity and a misunderstanding of what constitutes qualifying R&D activity

RESEARCH AND DEVELOPMENT IN SKIN CARE

The above mentioned natural skin care manufacturer demonstrated how they replaced chemical based compounds with natural, environmentally friendly ingredients that has the same or alternative benefits to skin care as chemically based products without compromising on shelf life and overall quality and integrity. 

OTHER QUALIFYING R&D ACTIVITY COULD INCLUDE:-

  • New formulae developed improved sunscreens and other personal care products by incorporating never before combined ingredients.
  • Sourcing of new ingredients to overcome sensitivities and the elimination of impurities for those with sensitive skin.
  • Development of opulent spa products without the use of readily available surfactants but still maintaining the same price point and performance characteristics.
  • Development of a product to ensure its ability to be poured into containers at one consistency and to set at another.
  • Overcoming issues regarding the heat to maintain preservatives and inhibit bacteria.

UK R&D TAX SPECIALISTS

Jeffreys Henry LLP is one of the UK's leading firms of Chartered Accountants and Tax Advisers with significant R&D tax experience. In recent months, we've processed over £17 million of R&D claims on behalf of our clients.

For further information, or to arrange a free initial R&D assessment, please contact Parminder Chattha or Bhimal Hira on 0207 309 2222.