How to use this guide
Start with the for the policy context your board needs to see. Then review — the biggest single cash-back mechanism for any size company. Check for co-funding. Use the to layer all sources. An AI FlightCheck™ (£4,500 · two weeks · below procurement threshold) produces the documented AI roadmap that unlocks every mechanism on this page.
— Biggest Single Opportunity
UK R&D Tax Credits — What FMCG & Logistics Companies Need to Know
The merged RDEC scheme is the single largest AI funding mechanism available to your company. Most qualifying mid-market businesses receive a net benefit of 15–16p for every £1 of qualifying spend. You don't need a research lab — custom AI development in demand forecasting, route optimisation, or commercial analytics almost always qualifies.
15–16p
net benefit per £1 of qualifying AI R&D spend
For accounting periods beginning on or after 1 April 2024, all UK companies claim under the single merged RDEC scheme. The headline credit rate is 20% of qualifying spend, taxable as trading income. At the 25% Corporation Tax rate, the effective net benefit is approximately 15–16p per £1. AI demand forecasting, custom route optimisation, RGM analytics platforms, and warehouse scheduling AI typically qualify.
Up to 27p
net benefit per £1 for qualifying loss-making SMEs
Loss-making SMEs (under 500 employees, turnover under €100M) spending at least 30% of total expenditure on qualifying R&D may claim under ERIS. The scheme provides an 86% additional deduction and a non-taxable payable credit worth up to 14.5% of the surrenderable loss. Relevant for FMCG or logistics scale-ups investing heavily in AI before reaching profitability.
10%
Corporation Tax rate on profits from patented AI IP
If your AI development produces patentable IP — a proprietary demand forecasting algorithm, a novel scheduling engine, a food-safety detection model — Patent Box reduces the CT rate on those profits to 10% versus the 25% main rate. The Chancellor's emphasis on building a sovereign AI edge reinforces the strategic value of patenting your proprietary AI capability.
What AI activities qualify in CPG, FMCG & Logistics?
| AI Activity | Industry | Qualifies? | Why |
|---|---|---|---|
| Custom demand forecasting model development | CPG / FMCG / Logistics | ✓ Yes | Resolves technological uncertainty in prediction accuracy |
| Revenue Growth Management (RGM) AI analytics | CPG / FMCG | ✓ Yes | Novel algorithmic development for pricing and trade investment |
| AI route optimisation engine (custom-built) | Logistics / 3PL | ✓ Yes | Technical advancement beyond off-the-shelf routing software |
| Warehouse scheduling & labour optimisation AI | Logistics / 3PL | ✓ Yes | Custom ML model to reduce labour costs via dynamic allocation |
| AI-powered food quality / safety inspection | Food Manufacturing | ✓ Yes | Computer vision overcoming genuine uncertainty in defect detection |
| Off-the-shelf SaaS AI tool subscription | All | ✗ No | No qualifying R&D expenditure — routine use of existing technology |
| Fine-tuning / configuration of vendor AI platform | All | ⚠ Partial | May qualify if resolving genuine technical uncertainty — get specialist advice |
Government Signal — 17 March 2026
The UK's stated goal: the fastest AI adoption of any G7 economy
The Chancellor explicitly named AI adoption as one of three top national priorities and committed to an AI Adoption Summit in H2 2026 — connecting leading tech firms with companies ready to adopt and scale AI. The £38.6B UKRI settlement — with £9B targeted at AI and Industrial Strategy sectors — confirms this is backed by real capital, not just rhetoric. Your board's AI mandate now has direct government-level framing to support it.
Documentation is everything. HMRC applies close scrutiny to AI R&D claims. Staff time logs, technical uncertainty records, experiment documentation and design iteration evidence are mandatory for a defensible claim. Start documenting from Day 1. Always use a specialist R&D tax adviser — not a generalist accountant. This guide is informational only and does not constitute tax advice.
Ready to Map Your AI Funding Stack?
Every pound you recover through RDEC, grants, and capital allowances is a pound that goes further in your AI implementation. An AI FlightCheck™ produces the strategy document that activates multiple funding streams — and tells you exactly where to start.
Disclaimer: This guide is for informational purposes only and does not constitute tax, legal, or financial advice. R&D tax relief eligibility, funding rates, and programme details change frequently. Always consult a qualified R&D tax adviser, accountant, or legal professional before making claims or applications. Details are accurate to March 2026 — verify directly with HMRC and Innovate UK before acting. References to the Mais Lecture 2026 are drawn from the published government transcript (GOV.UK, 17 March 2026). AI Navi has no affiliation with HMRC, UKRI, Innovate UK, or HM Treasury.