R&D Tax Relief for the Packaging Industry
The Packaging Industry is a thriving field for innovation. The combination of advancing technologies, increased environmental awareness, discerning consumers & a highly competitive market makes it fundamental for packaging companies to engage in the R&D process. Here we explore some of the highly technical challenges faced by the Packaging Industry and how government R&D tax credits might apply to businesses who are trying to overcome these types of challenges on a day to day basis.
Searching for new environmentally friendly materials;
Companies need to do research to invent new materials or to find creative ways to apply traditional materials. For example, tinfoil and plastics are not environmentally friendly so companies are looking at alternatives and the real challenge is to ensure that the biodegradable resources are safe and fully compliant as well as cost effective. These types of projects will involve R&D and therefore should qualify for R&D tax relief.
Using different materials in packaging & bringing them together;
A big challenge faced by packaging companies is getting different materials to bond together in the right way and this may require various rounds of experimentation which are all likely to qualify for R&D tax credits.
Developing new packaging systems and processes or improving existing ones to enhance efficiency and effectiveness of operations;
Companies are required to focus on creative strategies that increase productivity relative to costs. For example, in the Food Packaging Industry, they are constantly seeking new ways to stay ahead such as reduction in package weight, extension of product shelf-life and diminution of waste. Claiming R&D tax relief can help to fund these types of activities.
Responding to new lifestyles & a very competitive market;
Product design and packaging is becoming more focused on the users and they want performance and ease of use. Using research to address these types of challenges may be deemed eligible R&D.
There is growing concern about our environmental footprint so any projects which involve resource optimisation, responsible sourcing, reduction of waste, energy efficiency and reduced pollution are likely to be considered as eligible R&D.
Combatting counterfeit drugs;
There is a global campaign to fight against fake medicines. Companies are often required to offer bespoke authentication systems and designs to meet unique briefs.
Packaging companies in the pharmaceutical industry will need to research various tamper evident features & anti- counterfeiting measures such DNA authentication, secure holograms & black light verification. The funding provided by R&D tax relief can help companies to find the right solutions to this global issue.
Creating smarter labelling;
Companies are required to keep up to date with rapidly evolving technologies so that they can comply with secure delivery of packages, a current example being mobile phone barcode scanning. Internal processes will need to be improved or re invented to stay ahead with the latest trends and requirements. This type of innovation is likely to be considered as eligible R&D.
The constantly evolving and rapidly changing challenges faced by the packaging industry make innovation a basic condition for companies in this industry to succeed. It’s widely recognised in the packaging sector that R&D occurs so if your company is involved in any of these types of activities or similar then don’t miss out! Call us today to find out about the R&D Tax relief that could be available to you. Our bespoke software is designed to make your claim as simple as possible and our highly experienced consultants will guide you through it step by step.