Aerospace R&D Tax Credits

The sector employs approximately 95,000 people and is worth approximately £31 billion, with R&D to overcome uncertainty and technical challenges resulting in some of the most advanced aviation and space flight technology.

Because the aerospace industry is at the cutting edge of technology, with innovation as a driving force, many projects are potentially eligible for R&D tax credits, and the number of R&D claims in the UK is increasing year on year. However, many aerospace companies may be unaware that they are eligible for the incentive, especially if work is subcontracted.

Many aircraft manufacturers operate on a “fixed-cost per-piece” basis, which means they bear the cost of R&D and are only compensated if the manufacturing process is successful. These components’ prototypes, first articles, and testing are also eligible for credit.

What counts as R&D for tax relief purposes?

We suggest evaluating your project against the following criteria to determine if it meets the requirements for R&D classification in the eyes of HMRC:

• Is there technological uncertainty?
• If you took a competent professional in your field and gave them the documentation for your project, would the answer to your problem be readily deducible? If not, then you likely attempted to overcome some sort of scientific or technological uncertainty for your project to qualify.
• Have you achieved an advancement? The goal of any R&D project should be to take any given technology beyond what’s available in the public domain. So, if you’re doing something that’s never been done before to your knowledge, something that’s been done by other companies before in a way that was their own IP, or advancing an existing technology/approach beyond what it was natively capable of, then you could have done exactly that.
• Does it demand competent professionals? A professional in the relevant field shouldn’t be able to solve uncertainties with ease. A competent professional is one who is anticipated to be familiar with the pertinent scientific and technological principles involved, aware of the current level of knowledge, and has acquired experience and is acknowledged as having a successful track record.

Professionals involved in R&D claims in the aerospace sector include:

• Aerospace Engineer
• CAD Designer
• Chemical Engineer
• Electrical Engineer
• Engineering Manager
• Engineering Director
• Mechanical Engineer
• Project Manager
• Systems Engineer
• Software Engineer
• Structural Engineer
• Aerodynamicist

Our R&D Tax Credit Process

Our team of sector specialists, Aerospace professionals, accountants, and former HMRC tax inspectors is uniquely equipped to identify eligible R&D expenses in construction projects that other advisors may miss. Our process, specifically designed for the construction industry, is aimed at maximizing your claim and minimizing exposure to HMRC inquiries.

EXPLORE: Schedule a free appointment below to determine your eligibility and your company’s total R&D tax position.

CREATE: We’ll create a claim that minimises your exposure to HMRC enquiries, speeds up the process, and undergoes rigorous compliance checks by our in-house team.

OPTIMISE: We’ll help you find additional sources of R&D funding and offer planning assistance for your R&D strategy, considering potential incentives and grants.

REWARD: We’ll help you safely receive the maximum tax credit available, supporting your future growth.

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