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Few industries overlook the potential for claiming research and development (R&D) tax credits as much as restaurants and hospitality. Innovation is taking place every day as companies develop new processes, services and recipes, but many are simply unaware of R&D tax relief or what activities would make them eligible to qualify.
For restaurants, bars and hotels, any investment in delivering better service and advancing understanding of the methods and techniques behind it may be eligible. This can include everything from the creation of gluten-free recipes to the development of new technology to assist hotel guests visiting a new city.
Qualifying expenditure includes the materials or ingredients used, as well as the wages paid to staff involved in R&D efforts, so expert advice on compiling and submitting a claim is essential in this overlooked area.
Examples of eligible activities
- Development of vegan and gluten-free alternatives
- Recipe experimentation
- Creation of innovative customer booking apps
- New cooking methods and food prep techniques
- Develop sustainable hotel laundry techniques
A restaurant found sales of one of its signature dishes were in decline because a health-conscious public was concerned about high sugar content.
The head chef devoted some of his time each week to experimenting with alternative ingredients and methods of preparation. He was ultimately able to develop a version of the dish that contained much less sugar, without sacrificing customer satisfaction levels.