Unlock R&D Tax Credits For Food & Drink Today!

You run a food and drink business and you feel pressure from rising costs, energy bills and changing consumer demand. You develop new recipes, test shelf life, change packaging and improve production processes, yet you may not claim R&d Tax Credits For Food & Drink for this work.

Only 1% of R&D tax claims in 2022 came from the food and beverage sector, this shows many miss out on tax relief. This page will show what counts as R&D, which expenditure counts, from staff costs to materials and software, and how HMRC accepts claims.

R&D Tax Credit Specialists have helped over 1,500 clients win over £5,000,000 in relief, we will help you claim too. Read on.

Understanding R&D in the Food & Drink Industry

You test recipes and change formulations in the manufacturing sector to boost nutrition, shelf life, and flavour. You can claim research and development tax credit for trials, safety systems, supply chain work, sustainable packaging and technology, under HM Revenue and Customs rules.

What qualifies as R&D in food and beverage

A diverse group of SDA investors discussing pricing changes outside a modern office building.

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This means that as owners and investors, our focus should be on how these adjustments can affect income streams and the financial stability of SDA investments.

Let’s utilise available resources like the NDIS Pricing Arrangements and Price Limits documents as they are crucial tools aiding in smooth transitions towards applying these new arrangements.

You can claim r&d tax relief for developing new recipes. Formula work counts as research and development. It covers formulation and the combination of ingredients that change chemical, physical and microbiological properties.

Improving packaging methods, including sustainable packaging, qualifies for tax credits for the food industry. Enhancing production processes, optimisation work and new product development qualify in the manufacturing sector.

The food and drink industry faces manufacturing uncertainties such as scaling up, introducing machinery and ensuring consistent product quality. HM Revenue and Customs accepts trials to steady batches and Hazard Analysis Critical Control Point reviews as evidence.

R&D Tax Credit Specialists will help you prepare claims and detail costs to qualify for r&d tax credits.

Key drivers of innovation: health, sustainability, and consumer trends

A diverse group of SDA investors discussing pricing changes outside a modern office building.

This means that as owners and investors, our focus should be on how these adjustments can affect income streams and the financial stability of SDA investments.

Let’s utilise available resources like the NDIS Pricing Arrangements and Price Limits documents as they are crucial tools aiding in smooth transitions towards applying these new arrangements.

You face rising demand for healthier products, driven by a push for a healthy diet and lower sugar content. Health guidelines and sugar legislation force recipe reformulation, more vitamins, and new nutrient profiles.

Plant-based diet growth and drinks market growth expand product range across the food and beverage industries. Cost of living pressures and globalisation squeeze margins, so you must innovate to optimise costs and attract customers.

Sustainability goals compel changes in packaging, energy use and waste reduction across the food and drink sector. Supply chain interruptions and regulation create scientific or technological uncertainty in production methods and longer shelf life trials.

Laboratory testing, food science trials and technical research qualify as r&d in the food industry under HMRC guidelines. R&D Tax Credit Specialists was founded in 2010, and they help foodservice and manufacturers claim eligible r&d tax credits, reduce audit risk and optimise cash.

Their expert team uses proprietary software, and senior advisers speak quarterly at finance conferences to track regulation.

R&D Tax Credits for Food & Drink

You can claim R&D tax credits for food and drink in the United Kingdom. You must meet HMRC rules, record qualifying R&D and r&d costs, and use claim tools to cut your corporation tax and aid patent box work.

Overview of the UK scheme

You may reclaim up to 18.6% of qualifying R&D costs under the UK R&D tax credit scheme for food and drink. This scheme uses corporation tax to subsidise risk, and it supports over 11,675 food sector businesses developing new products and reformulation.

You must show your projects seek an advance in science or technology and that they address scientific or technological uncertainty. HMRC tax rules changed on 1 April 2023 for rates and repayable credits, and from 1 August 2023 HMRC requires extra information to validate r&d claims to combat fraud and errors.

Record r&d expenditure clearly, to prove you are eligible for r&d tax credits, to meet regulatory requirements, and to support Patent Box or corporate tax planning.

Common myths and misconceptions

Many food and drink firms think they do not qualify for R&D tax relief.
Smaller teams often find the tax credit claim process complex and intimidating.

Myth: R&D needs a lab; claims cover reformulation, canning improvements, new nutritional profiles, vegan alternatives and energy drink development, HMRC accepts these as r&d activities.
False: Only big firms qualify; eligibility includes SMEs, manufacturers across the food sector, and firms should check size tests and subsidy rules under the SME scheme.
Wrong: R&D relief rarely appears in your accounts, firms miss claimable work because relief sits outside profit adjustments and has no obvious line in financial statements.
R&D relief differs from tax planning; you must follow HMRC definitions, and show work met legislative tests rather than treat claims as general tax advice.
Qualifying criteria require significant change and non-obvious technical solutions; show evidence of effort, testing, and technological uncertainty, the two core tests are substantial change and non-obvious challenge.
R&D Tax Credit Specialists prepare robust technical reports, use a claim platform, and Andrew Dean’s 15 years’ Chartered Tax Adviser experience to minimise risk, the firm won Best Specialist Tax Advisers in 2019.
You often do not know regulatory upgrades count; claims cover food safety work, changes for dietary requirements, reduced oil use, and preservation for canning lines.
Process R&D, packaging redesign, energy saving projects and sustainability reformulation are claimable; invest in r&d to maximise r&d funding, then reinvest money into new food or beverage product development.

Eligibility Criteria

You must show the project solved a scientific or technical uncertainty to qualify for r&d tax relief for food. You can use HMRC guidelines, proprietary software, and our sector knowledge to spot eligible work, record costs, and meet regulatory compliance for your food and drink business.

Types of qualifying activities

These projects push knowledge and technology in the food and drink sector. They qualify for r&d tax relief for food if they solve scientific or technical uncertainty.

Claim plant-based product development, including formulation, ingredient substitution, pilot trials and lab analysis for veganism ranges; document technical hurdles and sensory panels as evidence for food and drink r&d claims.
Document nutritional reformulation work that reduces sugar or fat, and improves nutrient profiles; run at least three analytical tests and log knowledge gains to support r&d can help arguments.
Include sustainable packaging design, materials testing and packaging prototyping; record material trials, regulatory compliance checks and lifecycle analysis to show technological advance and costed expenditure.
Test preservation and shelf-life extension methods, using shelf-life testing, microbial analysis and pilot plant runs; this work reduces waste and meets qualifying activity criteria for r&d tax relief.
Log recipe innovation and production method development, with process modelling software, pilot trials and scale-up data; record problems solved and new manufacturing knowledge to support claims.
Record development of new energy drinks, covering formulation of any chemical substance, safety testing and stability studies; document lab work and technical uncertainty to prove food sector innovation.
Capture novel processing technology work, such as new thermal or enzymatic methods, automation trials and equipment prototyping; show clear advances in knowledge and repeatable technical results.
Run sensory panels and consumer studies focused on taste, texture and pleasure outcomes; keep analytics and protocol notes to show you advanced understanding that informed product development.
Include sustainability-driven reformulation, allergen reduction and healthier product alternatives; track ingredient trials, material costs and three types of evidence to support tax credits in the food sector.

Eligible expenditure and costs

You can claim many costs for r&d work in the food industry.
Use this list to spot eligible expenditure and costs quickly.

Staff costs, including employee wages, employer pensions and National Insurance contributions, qualify as eligible expenditure for r&d work, and you must record payroll and timesheets to support claims.
Subcontractor payments to third parties who assist with R&D projects qualify, include testing labs and specialist bakers, and track invoices to prove costs for food businesses.
Materials and consumables such as ingredients, prototypes and laboratory materials used in trials for food and drink products qualify, keep batch records and waste logs to justify claim values.
Specialist software and cloud computing services for recipe modelling, lab data analysis or process simulation count as eligible costs, food businesses could benefit, keep licence records and cloud invoices.
Utilities like power, water and fuel used directly in experiments or pilot production can be claimed, separate meter readings and allocate only R&D usage.
SME companies, defined as fewer than 500 employees and turnover under £100 million, can enhance eligible R&D spend by up to 186%, this raises tax relief for development in the food industry.
Loss-making SME firms can surrender losses for a payable credit, you can receive up to 10% of qualifying R&D expenditure, which provides immediate cash to reinvest in innovation.
Large companies, those with 500 plus employees or turnover above £100 million, claim under the RDEC scheme and receive 13% of qualifying R&D costs as a taxable credit.
HMRC requires clear records, so keep project notes, technical reports and direct cost mappings to r&d work, this proves development and speeds claim assessment for food businesses.
R&D Tax Credit Specialists will help you identify eligible expenditure, use accounting tools, lab records and payroll data, and calculate potential benefits precisely for your R&D projects.

How R&D Tax Credit Specialists Support Your Claim

You get clear tax guidance for food and drink businesses, on HMRC rules, SME R&D relief and RDEC. You also get hands-on help with r&d food and drink claims, using tax computations, project records and time sheets, Xero and Excel to build strong evidence….

Expertise in food and drink sector claims

You run a food and drink business. You test recipes, reformulate products and scale processes, tasks that qualify as r&d food and drink. These activities meet HMRC criteria if you document experiments and costs.

Andrew Dean, a Chartered Tax Advisor, leads R&D Tax Credit Specialists. You can use their claim software and audit-ready reports to file with HMRC. Market advisers have secured over £250 million in R&D tax credits for clients, some returned over £61 million in three years, and some recovered more than £3 million for prior claimants.

The firm recovered £500,000 for a client, it follows ICAEW standards and it complies with PCRT, and it helps small bakeries, large breweries and other food and drink businesses.

Streamlining the claim process with proprietary software

Our R&D Gateway portal lets you manage and track claims in one place. It integrates with Xero, Sage, and QuickBooks, syncing data automatically.

You receive payouts within 16 days of submission, faster than the industry average of 28 days. R&D Tax Credit Specialists’ experts draft, submit, and defend claims on your behalf. Use the free tax credit calculator to assess eligibility instantly.

Maximising benefits and minimising risk

Claim up to 18.6% of qualifying R&D costs, reducing your product development bill. Only about 10% of food and drink firms use this relief, so many miss out.

Use experienced specialists to cut filing errors and ensure HMRC compliance. A repayable tax credit or extra tax relief will protect cash flow during reformulation and sustainability projects.

R&D Tax Credit Specialists give free resources, help you plan, and maintain thorough record keeping while monitoring post-Brexit rule changes.

Success Stories: Impact on Food & Drink Businesses

You get big savings when testing and product reformulation meet SME R&D scheme rules, and HMRC approves the claim. Simple software and clear lab notes speed the claim, so you reinvest funds into trials and scale‑up.

Case studies from food and beverage clients

These case studies show clear outcomes. You will see how R&D Tax Credit Specialists turn lab work into maximised claims.

A coconut water project used mature coconut water, tests found higher sodium, which harmed taste. The team applied ion exchange and electrodialysis to lower sodium, the work qualified for R&D tax credits after cost tracing and project review.
A mini pizza project used recipe optimisation, laboratory assays and taste panels to boost flavour and texture. The team logged staff hours and ingredient trials, securing qualifying relief from HMRC.
You benefit when the team uses proprietary claims software, maps eligible costs, and quantifies laboratory and staff expenses for accurate HMRC submissions. This process speeds claims and reduces risk.
Clients report tangible savings and reinvestment into new product testing. Both projects passed rigorous project review and detailed expenditure analysis, producing successful claims across multiple financial years.

Tangible savings and reinvestment in innovation

You can recover up to 33.35% cashback on qualifying R&D expenses, improving your cash flow.

R&D Tax Credit Specialists spot eligible work like new product development, packaging innovation, and production process optimisation, and prepare HMRC compliant claims.

Many food and drink businesses miss out, a large portion of eligible costs remains unclaimed, freeing cash for reinvestment in new flavours, better production, and scaling.

Claims reduce corporation tax liabilities and subsidise risk, helping both small and large producers fund trials and expand.

They file via CT600, liaise with HMRC, and use accounting software to prove costs, so you get certainty and faster access to funds.

Navigating Regulatory and Legislative Changes

You must watch HMRC updates and post‑Brexit tax changes that affect R&D reliefs, like the research credit for larger firms and the small‑firm scheme. Use an accounting app, a claims tool, and clear project notes, to speed a compliant claim.

Adapting to new HMRC guidelines and post-Brexit regulations

From 1 August 2023, HMRC requires extra information to validate R&D claims, to combat fraud and errors. The Guidelines for Compliance, the GfC, clarify qualifying activity and reduce confusion.

Officials also imported EU regulation 1169/2011 into the UK Statute Book at Legislation.gov.uk, affecting food information and labelling rules.

Keep full project records, from conception to execution, for every reformulation, packaging change, or process test. Hire competent professionals to assess qualifying work and to prepare supporting evidence.

R&D Tax Credit Specialists use a compliance platform and a checklist to build claims that meet GfC standards. EmpowerRD provides free resources and support to help you follow the new rules.

HMRC also allows you to correct past R&D claims, and to amend tax returns under the GfC process.

Recent trends: sustainability initiatives and product reformulation

A diverse group of SDA investors discussing pricing changes outside a modern office building.

This means that as owners and investors, our focus should be on how these adjustments can affect income streams and the financial stability of SDA investments.

Let’s utilise available resources like the NDIS Pricing Arrangements and Price Limits documents as they are crucial tools aiding in smooth transitions towards applying these new arrangements.

Food manufacturers spent £160 million on R&D to reformulate products, cutting fat, salt and sugar, and boosting nutrition. You see recipe changes, removal of palm oil, and new vegan and organic ranges.

Companies fight food waste and tackle plastic packaging, and must address consumer and regulatory challenges through product innovation. The sector aims for net zero by 2040, so firms plan major investments in decarbonisation and energy efficiency.

RDEC scheme changes will alter claim routes and cash flow, and you must watch HMRC guidance.

A proposed Reformulation for Health Programme would support SMEs, at an estimated cost of £4 million a year. Industry groups call on the UK government to simplify R&D tax credit rules, to spur healthier innovation and reformulation.

Regulatory reforms must streamline approval processes for food innovations, while keeping high safety standards. R&D Tax Credit Specialists help you claim reformulation R&D. They guide you through carbon footprint analysis, energy audits and pilot trials to maximise rewards.

Why Choose R&D Tax Credit Specialists

You get award-winning support and clear R&D tax relief advice for small firms and larger groups. Our in-house cloud software links to HMRC online services, so you speed up your claim, cut corporation tax, and free funds for product reformulation and greener processes.

Award-winning service and proven results

You receive award-winning service and proven results. Your adviser holds a Master’s in Finance from the London School of Economics, and our team has more than 10 years’ experience in R&D tax relief.

R&D Tax Credit Specialists prepare end-to-end RDEC claims, compliant with HMRC rules, and clients report significant financial benefit from successful RDEC claims. Our proven specialists handle claims fast, so you secure funds to reinvest in innovation.

Commitment to community and industry leadership

You see our team fund and volunteer for local charities, we back STEM programmes for underprivileged youth. R&D Tax Credit Specialists sit on the government Research and Development Consultative Panel, and we share educational resources with industry groups.

You can claim R&D tax relief for testing and designing food and drink processes. This relief is a key government incentive, it drives much needed investment, and making a claim needs thought and planning before you submit to HMRC.

Our firm follows ICAEW regulation and complies with Professional Conduct in Relation to Tax rules. We publish an SME template to help you make a claim, and we track rises in claims for sustainable energy projects.

Talk to R&D Tax Credit Specialists to check eligibility and start your claim now.

Conclusion

You learned that R&D in food and drink covers recipe innovations, packaging solutions, and new production methods. You can claim relief using HMRC guidance, simple records, and an R&D tax calculator.

Will you check five qualifying projects and four eligible cost types today? Claiming correctly frees cash and speeds product development. R&D Tax Credit Specialists has secured £250 million for clients, and only 1% of 2022 claims came from the food and beverage sector.

Read 9. Conclusion, then contact our team, who use proprietary software and a tax return workflow to start your claim.

FAQs

1. What are R&D tax credits for food and drink?

R&D tax credits reward firms that do research and development in the food and drink sector. They give tax relief or cash, for work that aims at innovation in product development, process improvement, packaging or manufacturing.

2. Who can claim R&D tax credits in food and drink?

Small firms and larger firms can claim, if their work seeks an advance in science or technology. Qualifying work often covers product development, process improvement, research work and technical trials.

3. What costs count as qualifying costs?

Qualifying costs include staff pay, materials used in trials, software, and some subcontractor fees. You can also claim for prototype build and testing, and for direct research work.

4. How do I make a claim and what records do I need?

You file the claim with the tax authority, as part of your company tax return. Keep clear records, technical notes, timesheets and financial receipts, they support the claim and speed the process.

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