An innovative new scheme has seen bakers in Scotland receive £165,000-worth of tax relief for their research & development (R&D) work.

Three businesses have benefited from a government initiative thanks to working with Scottish Bakers, including Brownings the Bakers in Kilmarnock and Maclean’s Highland Bakery.

Scottish Bakers has teamed up with Jumpstart, a specialist in R&D tax credits, in a bid to achieve the savings for its members. Alan Clarke, chief executive of Scottish Bakers, told British Baker that businesses from across the country not just Scotland should try and benefit from the government’s tax relief.

Companies have received tax relief for people’s time, electricity and fuel for the oven, while involved in new product development.

He added: "There are very few bakers who are not involved in research and development activities, although I know they may not record them as such. In the current economic climate it is essential for bakers to avail themselves of all support on offer to them. In partnership with Jumpstart, we do all the necessary work and the bakers pay for service from the tax refund they receive."

John Gall, managing director of Brownings the Bakers, said: "Until we started using the Scottish Bakers service, provided by Jumpstart, we didn’t realise that an R&D tax credits scheme even existed. We have subsequently told many bakers in the industry about these missed opportunities."

Lewis Maclean, president of Scottish Bakers, added: "It’s important for the Scottish bakery sector to support this important government initiative, as we know the time and effort required to develop new products and consistently improve existing ones.

"This scheme recognises the cost of developing new products and provides a real cash return for this work."

l For more information call 0131 229 1401 or send an email toscottishbakers@jumpstart.co.uk.