Great Taste of Success with R&D Tax Relief for Brewers of Craft Beers

Many UK businesses are missing out on Research and Development Tax Relief and throwing £000’s down the drain (aka paying it to those nice people at the HMRC). We spoke to Simon Bulteel from Cooden Tax Consulting to understand more about how this tax relief works…

It’s not just technology and manufacturing companies that can apply for R&D Tax Relief. Entrepreneurial brewers can now claim back thousands of pounds against costs connected with research and development projects. Brewing is a competitive industry which constantly has to address the public’s thirst for new flavours and products. In an environment like this, opportunities to research raw ingredients and try out new production methods and taste combinations are almost inexhaustible.

Simon Bulteel, from Cooden Tax Consulting, is an R&D tax relief specialist. He recently discussed how this tax relief can be applied to brewers of various sizes with Craft Beer World. The Charles Wells Brewery in Bedford are a wonderful example of precisely the sort of project that could qualify for R&D Tax Relief. Master Brewer Chris Read spent “…a lot of time researching brewing archives, looking for traditional malt and hop recipes and working out how best to evolve them for modern tastes”.

He then went on to the development work with his raw ingredients and “arrived at a blend of Galaxy, Simcoe and Goldings Hops, alongside various lighter malts, to create a traditionally bitter and hoppy IPA with a soft, modern, tropical flavour.”

The Hackney Brewery is another good example of a business that could examine recouping costs for R&D. Brewers Tristram Stuart and Jon Swain spent time developing Toast Ale. They source left over fresh bread from artisan bakeries, then slice, toast and mash it, adding the breadcrumbs to malted barley, a mixture of hops, yeast and water. Profits from the sale of the ale, which is stocked in a number of different outlets in the UK, go to Feedback, an environmental organisation that campaigns to end food waste.

Inventive brewers can contact Simon at Cooden Tax Consulting for R&D Tax Relief advice (www.coodentaxconsulting.co.uk). He works directly with businesses, as well as via Accountants, Solicitors and Patent Attorneys. Simon will ascertain if you are eligible for this specific tax relief and undertake the claim process for you. He is currently processing a claim for a hop processor that also manufactures hop products for the brewing industry. Cooden Consulting has successfully helped businesses with claims between £3k and £300k.

Which business owner wouldn’t raise a glass to that?