R&D Tax Credits for Engineering

Reinvest in innovation and claim your share of millions secured in R&D Tax Relief for engineering businesses.

Why R&D Tax Credits matter for Engineering businesses

The UK Engineering sector drives economic growth and innovation across a broad spectrum of industries, including aerospace, automotive, and civil engineering to chemical, software, marine, and green technologies. This breadth offers endless opportunities to develop cutting-edge solutions.

Engineering R&D Tax Credits can be claimed for projects that design, develop, or enhance innovative products, processes, or services. Whether you’re tackling complex challenges in safety, efficiency, or sustainability, R&D Tax Relief can help fund your engineering breakthroughs while reducing costs.

Your engineering projects may qualify for R&D Tax Credits if they involve activities such as:

Designing new or improved products, machinery, or systems

Developing innovative manufacturing or production processes

Creating software, automation, or digital control tools

Testing materials for performance, durability, or safety

Prototyping or piloting projects for complex engineering solutions

Enhancing energy efficiency, sustainability, or environmental compliance

Developing advanced structural, mechanical, or electrical systems

Researching methods to improve safety and minimise operational impact

Various qualifying costs and expenses (speak to an expert)

Don’t forget you may still be eligible for tax relief even if your attempted solution fails. Find out what qualifies for R&D tax relief here.

Did you know?

Under HMRC rules, your business doesn’t need to succeed to qualify for R&D Tax Credits. If you’ve worked to overcome technical uncertainty through the design or enhancement of products, processes, or systems, you could still be eligible for engineering R&D Tax Relief, subject to HMRC eligibility criteria.

  • Electric Vehicle Company

    Electric Vehicle Company

    This company designs and manufactures sustainable four-wheeled pedal vehicles, integrating advanced materials and mechanical systems to improve efficiency and performance. Their CEO explained: “randd provided exceptional support throughout the compliance check. They had already prepared a comprehensive claim that clearly…

    See the full case study

    Read more: Electric Vehicle Company
  • “randd provided exceptional support throughout the compliance check. They had already prepared a comprehensive claim that clearly documented our development project, which formed a solid foundation for our defence.” Electric Vehicle Company CEO Read more: Electric Vehicle Company

Client success stories in the Engineering sector

How do R&D Tax Credits benefit engineering businesses?

R&D Tax Credits can offer financial relief by lowering your tax bill or even providing cash to reinvest in your business. For engineering firms, this means more resources to fuel innovation, boost efficiency, and advance new technologies, helping you grow and stay competitive. Whether you’re improving manufacturing processes or developing new products, R&D Tax Relief can support your journey every step of the way.

Can smaller engineering companies claim R&D Tax Credits?

Yes – whether you’re a small startup or a larger engineering firm, you can claim R&D Tax Relief. Even if you’re just getting started with early-stage projects or prototyping new technologies, R&D Tax Credits can help cover those costs and free up cash for future innovation.

What expenses can I claim for R&D Tax Credits in engineering?

You can claim a wide range of expenses related to engineering R&D. Some examples include:

  • Staff wages for those directly involved in R&D activities
  • Materials used for prototyping and testing
  • Software and equipment used in research and development
  • Subcontractor costs for external R&D work
  • Utility costs related to the R&D process (e.g., power and water for production testing)

These expenses can help maximise your R&D claim and support further projects in the engineering industry, as long as they are directly attributable to qualifying activity.

How long does it take to claim R&D Tax Credits for engineering projects?

R&D Tax Claims in the engineering industry typically take around 6-8 weeks, but timelines can vary depending on the complexity of your claim and HMRC review processes. At randd, we work efficiently to ensure you receive the maximum eligible relief as quickly as possible, so you can get back to focusing on your engineering projects without unnecessary delays.

What types of engineering projects are most likely to qualify for R&D Tax Credits?

Projects that involve solving technical challenges or creating innovative solutions are prime candidates for R&D Tax Relief. Common examples include:

  • Developing advanced manufacturing processes
  • Designing new mechanical systems
  • Creating automation software
  • Developing cutting-edge technology

Whether you’re working on improving sustainability, enhancing safety, or increasing efficiency, if your project pushes the boundaries of existing knowledge, it may be eligible.

How to claim your engineering R&D Tax Credits

Learn how much your engineering business could reclaim for its innovation with our R&D Tax Credit Calculator – an easy way to estimate your potential relief.

At randd, our results speak for themselves. We’ve delivered thousands of successful R&D Tax Credit claims for engineering projects.

Our specialist team also offers free, no-obligation healthchecks on rejected claims, HMRC enquiries, or existing submissions that could have been more rewarding.

Ready to maximise your return? Contact our expert team today and start your R&D Tax Credits claim with confidence.

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