R&D tax credits in the food industry
Industries such as medicine, pharmaceuticals and construction are often those we tend to think of when thinking about R&D tax credits. Food, however, is a huge industry where research and development takes place all the time, and solutions to problems are constantly being sought.
Here, we outline some of the ways in which R&D is helping solve issues in the food production industry, from the manufacture of food itself to distribution and packaging.
Solving fertiliser issues
One key area where R&D tax credits in the food industry are readily obtainable is in reducing the impact of fertilisers on the environment. Around half of global food production relies on ammonia-based fertilisers – the production of which requires a massive amount of natural gas. With the world’s gas resources already strained, it’s imperative that businesses look into fertiliser production methods – or alternatives – that can reduce the impact on the environment. Such activity can benefit from R&D tax relief.
Sustainable packaging
The pollution of our seas with plastics is an issue currently getting a lot of attention. Of course, many foods are packaged in plastic that is used once and then discarded. As such, organisations in the food industry are under pressure to find alternatives to plastic that will adequately preserve food and can be recycled effectively. These may include aluminium or sustainable plant-based materials that don’t require the use of fossil fuels in their production. A huge amount of research and development work will be needed to come up with a viable alternative and, again, this is where R&D tax credits can help the food industry.
Distribution methods
It will come as no surprise that food wastage is a problem for us, globally. It may, however, be surprising to learn that a significant proportion of food wastage occurs in developing countries. As much as half of the food produced in developing countries never goes to market, exacerbating the problem of hunger and malnutrition, as food can’t get to those who need it at an affordable cost.
R&D is playing a major role in solving this problem as organisations seek to find sustainable production methods, more effective ways of transporting food, and better storage methods. Among the initiatives available in the UK, research and development tax credit for food distribution activity is likely to provide vital funding for attempts to reduce wastage.
Free-from products
As we become more knowledgeable about food intolerance, there has been increasing demand for free-from products. Gluten-free bread and lactose-free butter are just two of the many examples of the types of foods available to those who react to certain allergens.
Again, research and development activity is required to find alternatives to gluten, lactose and other naturally occurring substances, with minimal effect on the flavour and texture of the food. Gluten-free bread, in other words, still needs to taste and feel like bread – and it’s R&D projects that enables food manufacturers to product such a product.
Are you making innovations in the food industry?
If your business is involved in innovative projects relating to the food industry, you could well be eligible for R&D tax credits. Food, packaging and distribution companies are under more pressure than ever to keep up with consumer demand, and R&D tax relief can significantly reduce the financial burden of their work. For help with making a claim, contact R&D Tax Solutions in Manchester today.
