Phoenix R&D: Hospitality

R&D Tax Credits in

Hospitality

Businesses in the UK have been given the impression that Research and Development is only aimed towards scientists and people creating specialist technology – however, this is not the case.

Hospitality is an underused section of R&D – with a study concluding that 3 out of 5 restaurant managers have never even heard of it! This is a problem because there are a lot of research & development activities that go on behind the scenes in restaurants, hotels and similar, which are never claimed for.

So... what is R&D?

Research and Development is all about uncertainty; if you undertake the process of either ‘researching’ and/or ‘developing’, you could be eligible for a claim.

An example of R&D in Hospitality would be creating a new system to avoid gluten-free products from contacting non-gluten free products.

Just 5% of eligible limited companies submit research & development claims, resulting in billions of pounds of tax relief to be unclaimed every year.

What makes me eligible for R&D tax relief?

Being a limited company in the UK, subject to corporation tax
Having carried out research and development into new products or processes
Having spent money on these projects

What are examples of claimable projects within Hospitality?

Databases – If the business has created a unique database to track, say, how well each dish is doing, it could be considered research and development.
Structural – The business could have had unique construction processes put into place.
Reducing Energy Consumption – An investment to reduce your carbon footprint which has been developed specifically for your company.
Products – A claim could be submitted if you spend X amount on researching into or developing your own cleaning products, for example.