R&D tax rebate enables engineering firm to plan new strategies
A BLACK Country engineering company is focusing on new research and development strategies after clawing back funding from the HM Revenue and Customs.
Tipton-based Midland Power Press Services appointed R&D Tax and Grants to help it reclaim part of its outlay on product development.
The Wolverhampton-based tax specialist enabled MPPS to claim back £26,702 over two years and the money is being reinvested back in the business.
MPPS provides support and services to the power press, metalworking and allied industries. It designs and develops manufacturing solutions to help other firms cut costs by reconditioning or refurbishing existing machinery rather than buying new plant.
Josie Stevenson, company secretary at MPPS, said: “MPPS are specialists in making old and dysfunctional factory machines into modern equipment with up-to-date functionality and components.
“This means our clients don’t have to purchase brand new machines, saving them thousands in capital costs while raising productivity and keeping their plant viable.”
It recently developed a new clutch and brake unit for 40-year-old 400-tonne press. The project cost less than £40,000 but to have replaced the press would have cost the business around £500,000.
The project owed much to the R&D carried out by MPPS beforehand.
Mark Evans, managing director of R&D Tax and Grants, said, “It’s a real pleasure to assist companies like MPPS. This is a perfect example of how important it is for HMRC to continue to support research and development projects.
“The team at MPPS had to undertake an enormous amount of R&D to overcome the problems, using their skills and problem solving to provide a successful practical and cost effective solution that enabled their client to continue production in the UK without having to purchase a very expensive new press.
“The £27,000 refund will enable MPPS to continue to assist other manufacturers and to help keep the Black Country tradition of tireless innovation and problem solving alive.”
