Brewing consultancy toasts R&D success in creating 100k savings
31 May 2021
Brewing supplies and consultancy business Murphy & Son saved almost £100,000 over the past three years thanks to its commitment to product development and progression.
The business, which has been supporting the world’s leading breweries for more than 130 years, says it has been able to deliver a number of ‘revolutionary’ product advancements thanks to research and development (R&D) tax returns that helped secure funds for innovation.
These include testing levels of sensitive proteins and tannic acid when creating a more sustainable cloudy consistency for beverages, working towards the production of vegan beer and manufacturing its remodelled layer board to transport stock sustainably.
R&D tax returns were secured by the firm’s advisers, accountancy firm UHY Hacker Young Nottingham, explained James Simmonds, partner and head of UHY's national drinks sector group.
“By identifying all aspects of the business’ recent projects that qualified for research & development relief, we’ve been able to supply the company with essential funds to ensure the brewery sector continues to progress and innovate,” he said.
Corporation tax (CT) relief was introduced by the government in 2000 to incentivise SMEs to invest in advancing their overall levels of knowledge and capability by allowing them to claim an enhanced tax deduction for qualifying expenditure incurred.
Murphy & Son’s projects have benefitted from additional tax relief on 130 per cent of all costs attributed to its research and development efforts, including lab equipment and consumables, product trials and testing, and staff costs. UHY Nottingham also secured funds for an element of the business’ utility bills, including water, fuel and power costs.
Murphy & Son MD Charles Nicholds said: “Innovation and technical support are incredibly important parts of our business.
“We are constantly striving to develop and bring new products to the market, improve our own manufacturing processes and help the industry with beverage storing methods. Now more than ever, it’s essential that we stay ahead of the curve and put time, money and resources into developing our offering as a company.”