UK engineering has a rich heritage and one that is key to global development. The engineering sector includes a wide range of sub-sectors, including industries such as aerospace, biochemical, civil, military, marine, electrical, railway, software engineering and many more.
Due to its nature, engineering is a sector where R&D can be present at almost every stage of a project, coupled with unlimited potential for new innovative projects to solve complex problems. This positions the industry as an ideal candidate for R&D tax relief.
What value of relief is available?
R&D tax relief is available for projects which seek to make an appreciable improvement, which is especially relevant for the advanced engineering sector. For example, if a product becomes out-dated or obsolete, it may require an engineering upgrade.
R&D tax relief is available to companies working in the advanced engineering industry to provide an additional deduction of 130% of R&D qualifying costs (equalling a total deduction of 230%) on their taxable profits. It can also be paid as a 14.5% payable tax credit for loss making companies.
Engineering firms are potentially missing out
As engineering companies are continually investing in ways to overcome technological uncertainty as conventional solutions are not possible, R&D tax relief is increasingly providing an important competitive advantage in this sector.
About Cowgills
Cowgills is a leading independent firm of Chartered Accountants and Business Advisors based in the North West of England – from Greater Manchester to Liverpool. We use our sector experience to deliver tailored financial solutions and support for growing entrepreneurial businesses.
Get in touch with our Head Office in Bolton, Greater Manchester, for any financial or R&D tax relief advice today on 01204 414 243.
Disclaimer
The information was correct at time of publishing but may now be out of date.
