Are you ready to eat that frog – literally?

No, I’m not talking about the brilliant time management book by Brian Tracy – though you should read this if you haven’t already – I mean, how do you feel about eating insects?

It is forecasted that by 2050 the world will host 9 billion people and to accommodate this number, current food production will need to almost double.

What we eat and how we produce it needs to change and food waste must be reduced. According to the U.N. we need to find new ways of growing food and entomophagy (the term for eating insects) is one of their solutions.

The food and beverage industry is the largest manufacturing sector in the UK, and despite already generating hundreds of millions of pounds a year, there are also ample growth opportunities.

One of those opportunities is in the development of insect-based food products because bugs are high in protein and can be produced relatively easily and cheaply compared to meat.

So, if you are a food company who can get people past the ‘yuck’ factor, then you could be quid’s in.

Let’s face it, that kind of solution doesn’t drop in your lap and to find it you are going to have to do a considerable amount of research into product development from recipe formulations to clever packaging.

That takes time and money - but did you know projects like this are a perfect example of those that are eligible for tax relief?

There is a huge amount of scope for R&D in the food and beverage industry yet only a small percentage of professionals working within the sector are aware of it or take advantage of this valuable tax relief incentive. 

In fact, the biggest example I can think of was back in 2016 when the sugar tax was brought in by Chancellor George Osbourne. Almost overnight drink companies had to immediately reformulate their products so they contained less than 5g or 8g of sugar per 100 millilitres – and not compromise on taste!

Organisations producing and selling fizzy drinks comprising of sugar above the bracket would be subject to levies of 18p and 24p a litre respectively.

As consumers we drive huge demand for new or improved food and drink products, and the development of new recipes and formulations which absorb these trends could represent R&D.

According to Forbes Magazine plant-based meat, seafood, dairy and egg alternatives or lab-grown meat or seafood will explode in terms of investment and sales in 2021.

Insects aside, other examples of products which are growing in popularity include foods which are:

?   Free-from

?   High protein

?   Vegan

?   Reduced sugar, fat, or salt

?   Palm Oil free

Ethical

Are you developing products with these in mind? Then we need to talk – quickly.

That is because since the launch of R&D tax credit schemes in 2000, over 300,000 claims have been made and ￡33.3bn in tax relief claimed.

As a rough rule of thumb, if you are a profitable SME you can expect about 25% of your R&D costs refunded.

Who wouldn’t want a tax rebate like that before Christmas?

As with many tax-related issues it is vital to get your application right and the process can be rather time-consuming which, is where I come in.

Over a coffee I have helped businesses from gin distilleries to an online training company uncover over ￡40,000 in R&D tax relief.

If you can spare me around three hours of your time, I can manage the whole process for you. I will complete your claim within four weeks, and with a fair wind behind HMRC, you could have your cash in time for Christmas.

Now wouldn’t that make for a better year end to 2020?

So – are you ready to eat that frog?

A quick telephone call with me can determine whether you qualify, and if you get in touch before the end of October then your claim could provide a real festive treat.

And if you would like a no-nonsense guide to Research & Development Tax Relief in your sector comment ‘Y’ down below and I will send a PDF over to you.

Call 07785 555515 or email [email protected]