Manufacturing Innovation: Are You Missing Out on Dedicated Funding?

In the UK, manufacturing businesses are at the core of innovation, solving real engineering challenges, improving processes, and driving product development. Yet thousands of manufacturers still overlook one of the most valuable funding incentives available: HMRC’s R&D Tax Relief.

If your operation has ever had to move beyond standard production methods, you may already be undertaking qualifying activity, without claiming for it.

Could Your Projects Qualify for R&D Funding?

Ask yourself the following:

• ⚙️ Have you tackled a challenge where standard manufacturing methods were not suitable?

• 🔧 Have you developed or modified your own processes, tooling, or machinery to achieve results?

• 🏭 Have off-the-shelf solutions failed, pushing your team to create something bespoke?

If yes, your business may be entitled to significant corporation tax reductions or even cash refunds.

What Counts as R&D in Manufacturing?

R&D isn’t limited to laboratories or white coats. In manufacturing, it often appears when skilled professionals are forced to engineer a workaround or develop something new to solve a technical or production challenge.

Qualifying activity commonly includes:

🔍 Process & Production Innovation

• Developing or enhancing manufacturing processes

• Creating or adapting tooling, jigs, or fixtures

• Integrating new systems to improve output or efficiency

🧪 Materials & Product Development

• Trialling alternative materials for durability, strength, or performance

• Designing prototypes or testing new product iterations

• Using CAD/CAM or 3D modelling to validate new ideas

⚙️ Machinery & Automation

• Customising or building machinery to meet unique production needs

• Introducing automation or robotics where standard systems failed

• Improving energy efficiency or compliance with new regulations

When Is It Considered R&D?

Your work may qualify when you:

• Could not rely on ‘tried and tested’ industry methods

• Faced technical uncertainty, where the outcome was not guaranteed

• Gained new knowledge or capabilities in the process

• Pursued innovation to solve a production issue, whether it succeeded or failed

Even unsuccessful attempts or abandoned projects can qualify if technical challenges were involved.

Examples of Eligible Manufacturing Projects

• Design and development of custom tooling or equipment

• Refinement of production lines using new process flows

• Innovation through CAD, simulation, or computer modelling

• Creation and testing of product prototypes or components

• Adapting materials to meet strength, temperature, or weight targets

Why It Matters

Manufacturing R&D claims frequently unlock tens of thousands of pounds in tax relief—funds that can be reinvested into machinery, staff, or innovation. Yet many eligible businesses never claim, simply because they believe they’re “just fixing a problem”.

In reality, those fixes may be exactly what HMRC wants to reward.

Secure the Funding You Deserve

If your engineers, designers, or production teams are consistently overcoming technical hurdles, building bespoke solutions, or developing new capabilities, you should be exploring R&D tax relief.

💬 Get in touch today to find out if your manufacturing projects qualify. Don’t leave money on the table.