10 surprising sectors that will surprise you with R&D (blog)
When it comes to Research & Development (R&D) tax relief, we always assume it’s the same type of companies that are claiming it. The most obvious being those in sectors such as engineering, manufacturing, sciences labs etc.
However, innovation really is everywhere. And, as a specialist in this field, I see R&D come in all shapes and sizes – some of which will really surprise you!
Below are just some of the most recent interesting cases I’ve come across.
1) Sex Industry
Now that’s woken you up!
If I were to ask you to think about lubricants, condoms, supplements, and toys- you don’t think they just fall out of thin air, do you? Like any sector, these products go through 100s of designs and re-iterations to improve their performance.
One client was responsible for improving the effects of male delay sprays. Typically, to de-sensitize the desired area, an element called benzocaine is added to these products. However, adding too much can result in a total lack of sensation. Through R&D, the company was able to overcome this issue while meeting the growing demand for natural ingredients too.
Nonetheless- a winning claim! 🎉 I wonder who the guinea pigs were in that project…
2) Death Care Industry
It’s an industry that we don’t really like to think about, so it’s no surprise that death care isn’t top of mind for innovation. However, one client, Parkgrove Crematorium, has spent the last few years developing, get ready for this…. a 100% electronic cremator. This technology is the first of its kind in the UK for a private company and it’s about to launch in early 2023.
This team has gone through various design adaptations, trial and error, advancing and improving every element you can think of – from timings to logistics to software - and is now at a stage where they can begin mass production.
3) Fast Food Franchises
When it comes to fast food – i.e., pizzas, kebabs, chicken – you may think the process is simple. The food is bought, cooked, and put in a box to be delivered to your house.
Well, think again.
Every fast-food franchise will have a development kitchen. And this is where all the wonderful recipe innovation comes to life. Improvements are constantly made on how ingredients react with one another, improving health benefits, advancing packaging options, maintaining consistency of flavours, textures, and tastes - the list goes on. All this work requires an intense period of trial and error to achieve the desired outcomes.
4) Teabags
It’s estimated that Brits drink a staggering 100 million cups of tea a day. However, have you ever wondered what happens to all that plastic?
Well, one of our clients invented a ’tea on a stick’. This company wanted to develop a natural and environmentally friendly alternative to its plastic counterparts. And of course, it had to taste nice too.
So, like all R&D projects, soon followed many rounds of testing, trialling, and experimenting. They also produced an extraction and filtration system, creating a high-quality liquid to concentrate product. But what about the stick? This was recyclable, mitigating the need for plastic cutlery on the go for stirring!
5) Children’s play areas
As in the example above, environmental factors are one of the key drivers for a lot of R&D activity. One client, who specialises in the design and manufacturing of outdoor wooden play areas decided to reuse McDonald’s plastic toys as the basis for their brackets and safety connectors.
Typically, with this type of plastic lumbering, the strength elements would not be effective enough. Therefore, intense design/testing and R&D was necessary to improve the plastic’s structural integrity.
6) Architecture
You would think that developing a building isn’t exactly innovative. There are buildings all around us and the concept has been around for years - brick and mortar.
But do you think the same concept is used to build a house in the centre of London vs the edge of a cliff in Northern Scotland? Probably not…
And, just like a doctor doesn’t have all the medical answers, an architect can’t readily solve every single build challenge. As a result, experts in this sector are constantly having to think outside the box when it comes to making their designs viable.
Not only that, but their clients are also constantly wanting bigger, better, and bolder which comes with problems on its own.
Clients, such as John Gilbert Architects, Collective Architecture and Smith Scott Mullan & Associates, are constantly pushing boundaries in the Passive House and sustainability spaces and advancing acoustic and thermal performances of buildings across the country.
7) Caravan Parks
Caravan parks may not be the most innovative businesses. However, every now and then they too undertake R&D activity.
For example, what happens when a park wants to go tech-savvy and create a cashless wristband? A band so intelligent, it uses AI technology to predict your next spend/next move. Then use that data to encourage you to return.
Software innovation is a dream these days and you can apply it to almost any field.
8) Telecommunications
As our need for technology evolves, so do telecommunication companies.
These businesses are constantly overcoming challenges to ensure their solutions are provided to us quickly and effectively. For example, what happens when their customer wants superfast broadband, but they can't get it because their building fabrications won't allow it?
Or even worse because their geographical location doesn’t have the capacity for it?
Or even, when their building is fine, but the off-the-shelf solution is super expensive or not suitable to their business needs?
There are times when telecommunication companies need to design and implement new constructive processes to achieve their desired outcomes. There may even be modifications made to off-the-shelf devices, software, or tools such as signal boosters, wires, transmitters etc. Even changes to the building may be required, which could lead to R&D if they are working within a listed building, for example, where you can’t just tear out walls!
9) HR and recruitment
When you consider these types of businesses, you don’t necessarily think of innovation. But to stay ahead of the competition, companies are spending £1000s on advancing their systems. They do this to give them intelligent data, which can be manipulated well and turned into smart revenue.
Always remember, HMRC doesn’t really care about what’s going on above the surface- it's what’s happening behind the scenes that counts.
10) Farming
How does a farmer get better-quality eggs? How can they tell if their cows are producing suitable milk? And how do they improve the quality of their potatoes to ensure they last longer than the average shelf life?...by carrying out R&D experiments.
One client decided they wanted to improve the quality and shelf life of their produce, and to do that, they undertook two projects. The first involved purchasing a piece of land purely for experimental purposes- manipulating the soils, the crops, the ground, and external conditions to reach the desired outcome. And the second saw them turn one of their facilities into an upgraded experimental unit incorporating a drywall, ventilation system and bespoke software programme which controlled and monitored the production conditions.
The risk of wastage was high but the client persevered and came out with a cracking claim.
Innovation is all around
So, whatever sector you operate in, don’t rule out the opportunity to explore the possibility to get money back for your R&D activity!
If you’re looking to get started, you can watch my simple explainer video on the three ways to make an R&D claim below or reach out via the contact me page.