R&D Tax Credits For The Manufacturing Sector

Get the sector experience you need to make a successful R&D tax relief claim

QLC helps manufacturing companies accelerate their R&D claims with our streamlined portal and expert team.

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Our manufacturing experience

With many years of experience helping manufacturing companies take advantage of R&D tax incentives, QLC understands the unique challenges and opportunities in your industry. We've helped many manufacturing businesses claim millions in R&D tax credits. Let QLC help you.

Find out more in our manufacturing sector success stories below:

Manufacturing R&D Tax Relief success stories

See how we help manufacturing companies leverage R&D tax relief to innovate, improve machinery performance and reduce costs.

CASE study 1

Maximising machinery efficiency

R&D innovations in plastic injection, paper rolling and printing equipment

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Our client, like many in the manufacturing industry, faced the challenge of boosting machinery performance without the significant expense of new equipment. To overcome this, they embarked on a series of R&D projects aimed at enhancing their existing machinery's capabilities. We collaborated closely, taking a comprehensive approach that tackled each problem in stages. These sub-projects not only delivered targeted improvements but also laid the foundation for future innovations.

Improving plastic injection moulding machines

A key focus was enhancing the efficiency of their plastic injection moulding machines. The goal was simple: increase the flow of pellets through the system to streamline production. The client designed and prototyped a 'collar follower' to integrate into the existing machinery, but the initial versions caused pellet contamination. This setback led to further iterations and material testing. After several adjustments, the final solution significantly improved performance, demonstrating the value of persistence in the R&D process.

Reducing manual intervention in paper rolling machines

Another critical project aimed to reduce the frequent manual intervention required for their paper rolling machines. Paper frequently stuck to the rollers, causing disruptions. To solve this, the client tested different materials and roller designs, refining prototypes until they found a solution that not only reduced maintenance but also increased the machine's overall efficiency. The result? Smoother production, less downtime and fewer manual fixes.

Lowering costs for paper printing machinery

Finally, the client sought to reduce the manufacturing costs of their paper printing machines without sacrificing performance. By exploring the existing structure, they developed a lighter, more efficient design. Rigorous testing ensured that safety and functionality were maintained, while production costs were significantly lowered—proving that innovation doesn’t have to come at a financial premium.

The results: success

Each sub-project yielded measurable improvements to the client’s machinery, establishing new benchmarks for the industry. Because such advancements were not readily available in the public domain, the work qualified as R&D, allowing the client to claim valuable tax credits. With these funds, they are now reinvesting in future innovation—proof that optimising existing equipment can be both cost-effective and growth-driven.

With QLC's help, they successfully claimed R&D tax credits for these projects, securing vital funds to reinvest in further innovation. This case exemplifies how investing in R&D for machinery improvements can be a cost-effective alternative to purchasing new equipment, all while enhancing efficiency and driving growth.

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CASE study 2

Innovating large-scale milling

Portable machine development for oversized workpieces

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Our client embarked on an ambitious project to develop a milling machine with enhanced capabilities, specifically designed to manufacture supporting beams used atop large doors, like those found in airports. These beams, measuring 13 metres long with custom-drilled slots, posed a significant challenge for existing milling machines, which lacked the capacity to handle such large workpieces. The engineers sought to create a machine that could overcome this limitation, making the project a perfect candidate for R&D.

Designing a machine for oversized workpieces

A conventional solution would have been to design a machine with an oversized bed and spindle to accommodate the larger beams. However, this approach would have resulted in an excessively large and impractical machine. Since portability was also a key requirement for the client, this solution was ruled out early on. Instead, the engineers focused on an innovative alternative—adjusting the workpiece itself to allow the machine to handle the larger beams while keeping the machine compact.

Innovating to reduce machine size without compromising functionality

Through extensive trials and experimentation, the engineers developed a unique method of holding the workpiece that allowed it to be processed in smaller sections. Alongside this, they engineered a new cutting technique to improve the efficiency of machining the slots. However, the initial trials affected the tolerances, prompting further design iterations to develop a holder that could support the machine and maintain the required precision.

The results: a portable, high-capacity milling machine

Ultimately, the project resulted in a breakthrough—a milling machine that could work on large workpieces, remained portable and maintained the precision of traditional, larger machines. This innovation not only solved the client’s manufacturing challenge but also represented a clear advancement over the existing machines available at the time. 

By partnering with QLC, our client was able to claim R&D tax credits for their innovative work on developing a portable milling machine capable of handling oversized workpieces. This funding allowed them to reinvest in further advancements, ensuring they continue to lead in machinery innovation without the financial burden of such ambitious projects.

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CASE study 3

Enhancing Tooling Efficiency

Redesigning a press mould machine for improved longevity and performance

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Our client set out to significantly enhance the lifespan and functionality of a tooling component used in producing angled coupling parts for underground sewer pipes. The existing component had design flaws that limited its efficiency and durability. The company identified the replacement of the existing inclined pin actuators within the mould tool as a key step toward improving both the pressing process cycle speed and the overall lifespan of the tool.

Redesigning mechanical elements for improved performance

The goal was ambitious: to fundamentally alter the mechanical elements of the press mould machine while simultaneously extending its lifespan and increasing its cycle rate. By replacing the inclined pin actuators with a hydraulic cylinder, the engineers aimed to create a more robust, efficient system. This transformation required more than just swapping components; it involved reconfiguring the tooling entirely to integrate the new, bulkier hydraulic system.

Overcoming challenges in system integration

The introduction of the hydraulic cylinder presented significant design challenges. Ensuring the machine maintained its functionality while incorporating this new component required a complete reorientation of the machine. The team developed several models, calculating and adjusting the machine’s clearances and adding ancillary parts to support the new system. The reconfiguration also included adapting the press core to the hydraulic cylinder and avoiding component extrusion, ensuring the machine operated smoothly despite the substantial changes.

The results: enhanced tooling and increased efficiency

By the end of the project, the client had achieved their goal—a vastly improved version of the original press mould machine. The new design not only extended the tool’s lifespan but also allowed for increased cycle speeds, making the process more efficient and reliable. 

With QLC’s help, our client successfully claimed R&D tax credits for their pioneering redesign of a press mould machine. This not only rewarded their efforts to improve tooling efficiency and longevity but also freed up vital funds to reinvest in future mechanical enhancements, driving continued innovation in their field.

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CASE study 4

Innovating machinery efficiency

R&D Success in plastic moulding, paper rolling and printing

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Our client undertook multiple projects aimed at enhancing the performance of existing machinery and we adopted a holistic approach to their R&D claim, highlighting various sub-projects. These included improving plastic injection moulding machines, reducing manual intervention in paper rolling machines and cutting machining costs for paper printing equipment. By focusing on refining existing technology rather than purchasing new machines, the client aimed to develop solutions that could be applied to future models. In each case, their innovations built upon the industry baseline, where little information existed on potential improvements, qualifying them for R&D.

Enhancing plastic injection moulding efficiency

The first sub-project focused on improving the flow of pellets through the plastic injection moulding machine, boosting efficiency. The client designed and prototyped a 'collar follower' to integrate into the existing setup. Early prototypes, however, led to pellet contamination, prompting further iterations with different materials. Through this iterative process, the team successfully enhanced the machine’s performance.

Reducing maintenance in paper rolling machines

The second sub-project aimed to address the problem of paper sticking to rollers, which caused frequent maintenance disruptions. The client experimented with various materials and roller designs, eventually developing a prototype that significantly reduced the need for manual intervention, streamlining production.

Lowering costs for paper printing machinery

In the final sub-project, the goal was to reduce the manufacturing costs of paper printing machinery while maintaining its functionality. The team investigated the current structure, ultimately developing a lightweight design that reduced costs without compromising on performance or safety. Rigorous testing ensured all health and safety requirements were met.

The results: cost-effective improvements

Each sub-project successfully enhanced the functionality and efficiency of the client’s existing machinery. 

Each of our client’s sub-projects—whether improving plastic injection moulding, reducing paper rolling maintenance, or lowering paper printing costs—qualified for R&D tax credits with QLC’s guidance. This crucial funding allowed the company to reinvest in more cost-effective innovations, strengthening their competitive edge in the manufacturing industry

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Success stories

What Our Clients Say About Us

"I am really impressed with the efficiency of your work, and the results you got for our company. A very friendly, committed and obviously hardworking team. You made the whole process very easy."

Will Tompkins (Director)

Vintage and Classic Cars

"QLC successfully claimed credits for the past 2 financial years, this year was even better. They managed the application and claimed the R&D credit prior to our annual tax bill, making the whole process quicker, easier and more efficient than last year."

Andrew Forbes (Director)

Architecture

"A massive thanks to all your team, obviously with the current situation, this money couldn’t have come at a better time."

Ian Cooke (Director)

Engineering

"From our experience we have always found QLC to be efficient and thorough in their tax appraisals, carefully guiding us through the often complex process. They have a very approachable team, all of which have been able to offer excellent advice when needed."

Ben Reed (Director)

Architecture

"They are proactive and efficient in performing their service and I have been impressed by their dynamism."

Chris Wright (Director)

Motorsport Engineering

"Your company did exactly what you said it would do. It took far less time than the other company that we had used in the past. We are extremely pleased with the outcome."

Adrian Smith (Company Sec)

Manufacturing Firm

"I am really impressed with the efficiency of your work, and the results you got for our company. A very friendly, committed and obviously hardworking team. You made the whole process very easy."

Will Tompkins (Director)

Vintage and Classic Cars

"QLC successfully claimed credits for the past 2 financial years, this year was even better. They managed the application and claimed the R&D credit prior to our annual tax bill, making the whole process quicker, easier and more efficient than last year."

Andrew Forbes (Director)

Architecture

"A massive thanks to all your team, obviously with the current situation, this money couldn’t have come at a better time."

Ian Cooke (Director)

Engineering

"From our experience we have always found QLC to be efficient and thorough in their tax appraisals, carefully guiding us through the often complex process. They have a very approachable team, all of which have been able to offer excellent advice when needed."

Ben Reed (Director)

Architecture

"They are proactive and efficient in performing their service and I have been impressed by their dynamism."

Chris Wright (Director)

Motorsport Engineering

"Your company did exactly what you said it would do. It took far less time than the other company that we had used in the past. We are extremely pleased with the outcome."

Adrian Smith (Company Sec)

Manufacturing Firm

How much could you claim?

The average R&D tax claim in the manufacturing sector 

For your own quick estimate, you can use our easy-to-use R&D tax calculator:

£ 47 k

Common R&D activities in the manufacturing sector

Below is a comprehensive list of R&D activities in the manufacturing sector that may be eligible for R&D tax relief in the UK.

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Process Innovation and Improvement

Product Design and Development

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Machinery and Equipment Enhancement

Material Science and Development

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Advanced Manufacturing Techniques

Software Development for Manufacturing

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Sustainability and Environmental Improvements

Quality Control and Assurance

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Health and Safety Improvements

Supply Chain and Logistics Innovations

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Packaging and Delivery Systems

Energy Efficiency and Emissions Reduction

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Lean and Agile Manufacturing Techniques

Customization and Mass Customization

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Maintenance and Reliability Improvements

Waste Minimization and By-product Utilisation

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Advanced Materials Development

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Why choose QLC?

QLC and our portal help businesses like yours claim R&D tax credits and tax relief faster and more successfully than ever.

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Faster payouts than our competitors
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See your money in 16 days
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No minimum fee
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Stakeholder transparency

Manufacturing R&D tax credit FAQ

What types of activities qualify as R&D for tax relief in the manufacturing sector?

R&D in manufacturing can include developing new products, improving existing machinery or processes, creating prototypes, automating manual processes, improving material efficiency, reducing waste and enhancing product durability or performance. Check our comprehensive list above and if you have more questions, get in touch.

Can improvements to existing machinery qualify for R&D tax credits?

Yes, making significant improvements to existing machinery qualifies, especially if the changes enhance performance, efficiency, or longevity in ways that solve technical challenges. This can include modifications that extend the life of equipment, improve throughput, or reduce energy consumption.

Do failed R&D projects still qualify for tax credits?

Yes, unsuccessful R&D projects can still qualify for tax relief. The relief is available for any project attempting to resolve scientific or technological uncertainties, even if the project doesn’t achieve the intended outcome. The focus is on the process of experimentation and innovation.

Can we claim R&D tax relief for custom tooling or jigs developed for manufacturing?

Yes, the development of custom tooling, jigs, or fixtures to solve specific production challenges or improve manufacturing processes can be eligible for R&D tax credits. This is especially true if the work involves overcoming technical difficulties or pushing the boundaries of existing methods.

Can subcontracted R&D work be included in our claim?

Yes, subcontracted R&D work can be claimed, but the amount you can claim depends on whether you are using the SME R&D scheme or the Research and Development Expenditure Credit (RDEC) scheme. For SMEs, subcontractor costs can be claimed at 65% of the total, provided they are directly related to the R&D project.

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Can developing new production processes be included in an R&D tax relief claim?

Yes, developing new production processes or improving existing ones to increase efficiency, reduce waste, or improve product quality typically qualifies as R&D. For example, automating a manual process, improving workflow, or enhancing energy efficiency may involve overcoming technological challenges that make the project eligible.

How do we claim R&D tax credits if our company has international operations?

Only R&D activities and associated costs incurred within the UK qualify for R&D tax credits. However, you may be able to claim for costs related to overseas subcontractors if they are contributing to a UK-based R&D project. The specific treatment depends on how the work is organised and whether it aligns with UK tax credit rules.

Can software development for manufacturing operations be claimed as R&D?

Yes, developing or enhancing software that supports manufacturing processes, such as control systems, data analytics, or process automation, can qualify for R&D tax relief. This is especially true if the software resolves technical challenges related to improving the efficiency or capabilities of manufacturing equipment.

Are energy efficiency improvements to machinery eligible for R&D tax relief?

Yes, any research or development aimed at improving the energy efficiency of machinery or manufacturing processes can qualify. This includes designing or modifying machines to use less energy, reduce waste, or lower emissions, provided there is a clear technological challenge involved.

Can we claim R&D tax credits for work done on health and safety improvements in manufacturing?

Yes, health and safety improvements that involve overcoming technical uncertainties can qualify for R&D tax relief. For example, developing safer machine designs or improving processes to reduce risks in the production environment could meet the eligibility criteria.

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Many manufacturing companies work with specialist advisors like us to ensure they maximise their claims and comply with HMRC’s requirements. Why not get in touch or start a trial of our R&D tax claim portal?