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How we help

Tax relief support for Engineering Companies

Bonham & Brook helps engineering companies claim tax relief for qualifying technical development, capital investment and industrial property activity.

Our specialists assess your projects, costs, assets and site records to identify relevant relief opportunities across R&D tax relief, Capital Allowances and property-related tax, calculate qualifying expenditure and prepare supporting claim documentation.

£19mSecured for Engineering clients
110Businesses Supported
94%

Client Satisfaction

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Key challenges facing Engineering companies

Engineering companies face pressure to control project costs, protect margins and fund investment in better designs, systems, equipment and industrial sites.

These pressures can create tax relief opportunities when costs relate to qualifying R&D work, high energy use, plant and machinery investment or industrial site activity.                   

 

Common challenges include:

  • Technical design changes requiring testing, modelling or repeated engineering review
  • Component, system or material performance issues that require specialist problem-solving
  • High energy costs from testing, production, processing or specialist equipment
  • Large capital spend on plant, machinery, technical equipment and site infrastructure

R&D Tax Credits can help engineering companies recover part of their qualifying development costs, improve cash flow and fund further design, testing or technical development. Energy Tax Relief can reduce the cost of high energy use. Capital Allowances can reduce taxable profits on qualifying plant, machinery and equipment spend. Land Remediation Relief can increase tax relief on qualifying industrial sites and remediation costs.

We connect your projects, costs, assets and site activity to the relevant reliefs, then prepare the calculations and evidence needed for submission.

Sub-sectors within Engineering

  • automotive-engineering Automotive engineering
  • aviation-aerospace Aviation and aerospace
  • defence-engineering Defence engineering
  • product-technical-design Product and technical design
  • electrical-electronic-engineering Electrical and electronic engineering
  • mechanical-engineering Mechanical engineering
  • industrial-engineering Industrial engineering
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Our services

How we help Engineering companies

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£500M+

R&D Tax Credits

  • Innovation

R&D Tax Credits help engineering companies recover part of the cost of development work involving design changes, component performance, material substitution, prototype development or system testing.

A valid claim may reduce Corporation Tax or generate a payable credit, depending on the scheme and company position.

  • Claim a percentage of qualifying R&D spend We assess which R&D scheme applies to your company, then calculate the claim value under the correct rules.
  • Project eligibility reviewWe assess technical uncertainty in design work, system performance, component testing, material substitution and prototype development to identify qualifying R&D activities and separate them from standard engineering work.
  • Eligible expenditure calculationWe calculate eligible staff, external specialist, material and design or modelling software costs directly linked to the R&D project.
  • Evidence and claim preparationWe prepare the technical explanation, cost schedule and supporting documents required for the claim submission.
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£500M+

Energy Tax Relief

  • Energy Tax Relief

Energy Tax Relief can reduce taxes, levies and carbon costs within production, testing or specialist equipment energy spend.

We review energy use, billing data and sector eligibility to identify applicable schemes and calculate the claim, exemption or relief position.

  • Reduce levy costs on electricity useWe assess EII eligibility where qualifying engineering products and electricity intensity meet the scheme criteria.
  • Claim quarterly carbon cost compensationWe review UK ETS and CPS Compensation eligibility for quarterly payments linked to indirect carbon costs in electricity prices.
  • Recover or remove Climate Change LevyWe check whether qualifying process energy is eligible for CCL exemption, rebate or backdated recovery.
  • Application and renewal supportWe prepare the calculations, evidence and forms needed for claims, certificates, quarterly submissions and renewals.
Capital Allowances - Engineering
£500M+

Capital Allowances

  • Capital Allowances

Engineering businesses often invest in workshops, technical facilities, extensions and refurbishments. Capital Allowances can provide tax relief on qualifying expenditure within the buildings, fitouts and infrastructure supporting these operations.

We review capital expenditure associated with your property to identify qualifying plant, fixtures and integral features that may not have been fully recognised through standard accounting processes.

  • Workshop Infrastructure & Integral FeaturesWe identify qualifying expenditure within workshops and technical facilities, including electrical installations, heating and cooling, ventilation, lighting, security, cabling and other integral features.
  • New Facilities, Extensions & RefurbishmentsWhether you're constructing a new facility, extending an existing site or refurbishing operational premises, we review project expenditure to identify qualifying Capital Allowances.
  • Retrospective Investment ReviewsPrevious investment in workshops, facilities and refurbishments may contain allowances that were not fully identified or claimed. We can review historic property expenditure to identify potential opportunities.
  • Claim Preparation & SupportWe analyse and categorise qualifying expenditure, calculate the available allowances and provide the supporting information required for your tax computations and Corporation Tax return.
R&D Construction - Land Remediation
£5M+

Land Remediation Relief

  • Land Remediation Relief

Engineering businesses may acquire or redevelop sites with a history of industrial or engineering use. Where contamination or dereliction creates additional remediation costs, Land Remediation Relief can provide an enhanced tax deduction for qualifying expenditure.

  • Enhanced relief on remediation expenditureQualifying expenditure can receive a 100% deduction plus an additional 50% deduction, subject to the relevant conditions.
  • Site and property reviewsWe review site history, property information and project expenditure to identify potential remediation relief opportunities.
  • Contamination and remediation costsWe assess qualifying expenditure associated with the remediation of contaminated or derelict land and buildings.
  • Claim calculation and evidence supportWe calculate the available relief and help assemble the evidence required to support the claim.
Our edge

R&D tax relief specialist support for Engineering companies

At Bonham & Brook, engineering R&D claims are led by dedicated R&D specialists who understand how technical development appears in engineering projects, design work and technical delivery environments.

Our specialists work with engineers, design teams, technical managers, testing teams, project teams and finance teams to review design changes, system performance, component testing, material substitution and prototype development.

We use project team input, technical records and financial data to prepare a claim that explains the technical uncertainty, defines the qualifying activity and links supporting costs to the activity being claimed.

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Tom Goodier

R&D Tax Specialist

Engineering companies

R&D costs that can be claimed

The cost areas below are commonly reviewed in engineering R&D claims. Whether they qualify depends on the project activity, the technical uncertainty involved, the company’s role in the work and the evidence linking each cost to the qualifying R&D activity.

As part of our review, we assess your project costs, identify eligible expenditure and confirm what can be included before preparing the claim.

01

Engineering, design and technical staff time

Engineering, design and technical staff time can be included in an R&D claim when it relates to qualifying technical work. In engineering, this may include engineers redesigning components, design teams testing revised systems, technical managers investigating performance issues and test engineers validating new or improved technical solutions.

02

External specialist support and technical testing costs

External specialist support and technical testing costs can be included when they support technical investigation, analysis, prototyping, validation or performance testing during qualifying development work. In engineering, this may include external materials testing, specialist test house work, component validation, aerodynamic testing, durability testing, tolerance validation, thermal analysis, EMI testing, fire testing, component-level validation or technical consultancy on system performance.

03

Materials, components and prototype build costs

Materials, components and prototype build costs may qualify when they are used for testing, prototyping or technical development work. In engineering, this may include prototype components, sample parts, composite materials, prototype assemblies, modified components and materials scrapped during failed technical trials.

04

Design, CAD, simulation and modelling costs

Design, CAD, simulation and modelling costs can be included when they are used for design, modelling, testing or analysis during development work. In engineering, this may include CAD licences, simulation tools, FEA or CFD modelling, metrology data and software used to model performance, tolerances, loads, heat transfer or fluid behaviour.

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Download our R&D Guide

Get a comprehensive guide to help you identify, prepare, and maximise your R&D claims.

Case Studies

Examples of how we’ve helped businesses secure funding, manage risk, and unlock tax value.

Case Studies

Examples of how we’ve helped businesses secure funding, manage risk, and unlock tax value.

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Reviews & References

What our clients say

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Tax relief eligibility review for Engineering companies

Book a structured, no-obligation review with a specialist. We’ll assess your technical projects, energy use, assets and site activity, then provide a clear viability report.

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Confidential

All discussions are held in strict confidence.

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Complimentary

Initial eligibility consultation is always complimentary.

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