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Finding R&D in Retail

Updated: Nov 2, 2022

Retail has been one of the most affected sectors hit by the coronavirus pandemic. With the highstreets closed for months on end, we’ve seen both small and large retailers close their doors for good. Despite the government providing various support packages (for most businesses), we understand businesses need all the help they can get right now.

R&D Tax Relief is a very real opportunity for businesses to get money back into their businesses. It could be the cashflow boost a business needs during this extremely difficult period.

Retail might not strike you as one of the most obvious industries to claim R&D tax relief. But like many other industries, there are lots of businesses potentially missing out on R&D tax relief because they simply don’t believe they qualify.

If ever there was a time to understand whether R&D Tax Relief is relevant for your clients, it’s now. We recommend you reach out to ALL retail clients or prospects to determine if they could be claiming

What projects could qualify as R&D

Here’s some examples of retail business projects that have qualified to claim:

Investing in complex website and software application development

Developing and commercialising new innovative products

Using new materials in products such as smart fabrics

Improving the performance of materials in products e.g. to be lighter, thinner, stronger, brighter or cheaper

Development of mobile or tablet technology to improve operational efficiency

Investing in development of bespoke systems to effectively manage shipments and reduce costs

Investing in new to industry machinery or adapting machinery to improve performance and productivity

Implementation of new stock or enterprise software

Developing and installing automated systems for customer handling

Improving existing processes through implementation of new technology

Replacing packaging with more robust or eco-friendly packaging

Developing and building bespoke e-commerce apps for that allow for personalised customer experience

Use of data analysis and technology to make improvements to customer targeting/profiling

Developing a platform or application to capture customer data for improved targeting/profiling

Use of data & performance analytics to improve e-commerce online

Case studies

Case Study 1: The development of a mobile and web application for online learning and training, superior to any other platforms currently being used by education institutions. Costs claimed were predominantly for professional staff, subcontracted developers and software licenses.

Claim size: £15,000 HMRC cash refund

Case Study 2:

A manufacturer of paper products developed and commercialised a new stationery product. Costs claimed were predominantly for professional staff, costs of materials and subcontracted developers.

Claim size: £18,000 HMRC cash refund

Case Study 3:

A Home Interiors retailer developed a bespoke e-commerce web application for retail of specialised fabrics. Costs claimed were predominantly for professional staff and subcontracted developers.

Claim size: £7,000 HMRC cash refund

Case Study 4:

A Confectionery & Gifts Retailer developed new innovative gifts and soap products. Costs claimed were for staff costs, subcontractors and costs of materials.

Claim size: £13,000 HMRC cash refund

Case Study 5:

An e-commerce retailer developed of specialist shipping integration software. Costs claimed were predominantly for professional staff and subcontracted developers.

Claim size £7K cash refund from HMRC.

Don’t let clients miss out

If you think there is even a small chance your client might be doing some activity that could qualify for R&D Tax Relief, book a quick call with us. It only takes about 15 minutes to determine whether a client could be claiming.

Let’s get some money back in your clients’ businesses.

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