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R&D Tax Credits in the Brewing Industry: A Brewer's Guide

The brewing industry is not just about crafting delicious beers; it's also a hotbed of innovation and experimentation. Over the years, I've had the privilege of working closely with numerous breweries, and it's an industry I love to work with. From the art of brewing to the science behind it, there's always something new to learn. One aspect that has come to my attention recently is the underutilised opportunity of R&D tax credits within the brewing sector. In my pursuit to help breweries thrive, I've found that many small and medium-sized breweries may not be fully capitalising on the tax relief they are entitled to. In this article, we'll delve into the world of R&D tax credits in the brewing industry and how breweries can maximise their claims.

The Innovative Side of Brewing

Brewing isn't just about producing large batches of tried-and-true recipes. It's a dynamic field where brewers are constantly experimenting with ingredients, techniques, and equipment to create unique flavors and experiences. Whether it's developing new beer styles, perfecting brewing processes, or creating sustainable practices, innovation is at the heart of brewing.

Recognising R&D Tax Credits

Research and Development (R&D) tax credits are government incentives designed to encourage innovation. They provide financial relief to companies investing in research and development activities. The brewing industry is a prime candidate for these tax credits, as it involves numerous R&D activities. These can include:

Recipe Development: Experimenting with various ingredients to create new beer recipes or improving existing ones is a form of R&D. The costs associated with developing these recipes can be eligible for tax credits.

Brewing Techniques: Breweries often explore new brewing methods, such as barrel aging, souring, or innovative filtration processes. Costs incurred during these experiments can also qualify for tax relief.

Sustainability Initiatives: Breweries are increasingly focused on sustainable practices, which often require R&D. Developing eco-friendly packaging, wastewater treatment solutions, or energy-efficient brewing processes can all be eligible for tax credits.

Quality Control: Ensuring the consistent quality of beer is vital. Research into quality control measures and the development of quality assurance protocols can be considered R&D activities.

The Challenges Breweries Face

Despite the clear potential for R&D tax credits in the brewing industry, many SME breweries are either unaware of these opportunities or are not maximising their claims. Here are some common challenges breweries face:

Lack of Awareness: Many breweries are simply unaware that their innovative activities can qualify for R&D tax credits. It's crucial to educate brewery owners and managers about the possibilities.

Undervalued Claims: Some breweries engage third-party consultants to help with their R&D tax credit claims. However, they may receive undervalued claims due to a lack of understanding of the specific challenges and innovations within the brewing sector. Here at Stamford Cromwell, we have first-hand experience working with and in the Brewing Industry.

Learn More With Stamford Cromwell

The brewing industry is a hub of innovation, and R&D tax credits offer an excellent opportunity for breweries to receive financial support for their inventive endeavors. It's important for breweries to recognise their eligibility for these credits and take the necessary steps to maximise their claims. By doing so, breweries can continue to push the boundaries of brewing, creating new and exciting flavors while benefiting from the financial relief offered by R&D tax credits. As someone who cherishes the brewing sector, I'm dedicated to helping breweries thrive, and I encourage all breweries to explore the potential of R&D tax credits to fuel their innovation and growth.

Cheers to the future of brewing and the opportunities it holds!

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