Research & Development

AUTOMOTIVE

If your business is in the automotive sector, there’s a strong chance that you could benefit from a Research and Development (R&D) incentives claim.

R&D may sound like complex tax relief, only available for boffins and scientists who are pursuing ground-breaking developments. It’s not. It’s available to so many other businesses.

Put a different way, the automotive sector are always innovating to push the boundaries be it in new materials, durability, lightweighting, electric power trains, space constraints, value engineering, or even the same products but a different manufacturing process. Some new, some existing but looking to improve and progress. All equally qualifying. If that’s you then there’s a good chance you could benefit from making a claim.

Don’t miss out on an opportunity to claim the up to 33.5% cashback which is available on qualifying R&D spend.

R&D TAX CREDITS FOR THE FOOD AND BEVERAGE INDUSTRY EXPLAINED

The UK government wants to reward and fuel research and development in the food industry. If your business has been focusing on new product development, including improvements to flavours, shelf life, and nutrition, it’s likely that you’ll qualify for R&D incentives relief.

With so much news in the press about increased obesity rates and changes in legislation to sugar content, now is a great time to receive cash incentives to make improvements to your existing product range.

Further developments may also be eligible for R&D incentives.

WE REALLY GET UNDER THE BONNET OF R&D IN AUTOMOTIVE

In four years, we’ve put more than £61 million back with businesses through making R&D incentives claims. Our experienced and dedicated R&D incentives specialists know what to look for and we know where to find it.

Meet Chris Knott our lead R&D Partner who really gets it when it comes to the opportunities for businesses in the automotive sector. With his combination of over 21 years’ R&D Incentives experience, Chartered Tax Advisor status and mechanical engineering background, Chris has a unique combination of qualifications and experience that has been used to good effect in the automotive sector.

By being able to walk the shop floor and “look under the bonnet”, he has made claims for 5 of the F1 teams, 3 tier 1 car manufacturers (increasing 1 of their claims 4-fold from what had been previously advised!). Additionally, in terms of the multitude of supply chain that sits underneath it all, over the years he has also made claims on everything from brakes and pedals to axles and tyres.

R&D TAX CREDITS FOR AUTOMOTIVE EXPLAINED

If you can identify your technology or science project undertaken over the last 2 to 3 years, which meet a special definition of R&D then you can potentially make a claim. You don’t need to be setting the world alight, but projects must meet two criteria. 1. Seeking an advance in science or technology, and 2. Whilst resolving scientific or technological uncertainty.

Simply put, “Change” and “Challenge”


Change

Projects that include some element of “change” qualify. We’ve looked to make something different, better in some way (quicker, lighter, stronger, smaller).


Challenge

There wasn’t an obvious or standard solution, so we couldn’t effect the change immediately without some thought, time and testing. Some challenges were faced that lead to the engineers scratching their heads and a few sleepless nights (we love a good old-fashioned engineer’s “tweak”).

The process involves identifying costs you’ve incurred during the R&D projects. You can claim staff costs (directly and indirectly involved), payments to contractors or agencies supplying personnel (potentially, dependent on size of the company), consumables, software licences and utility costs.

WHAT TYPE OF AUTOMOTIVE PROJECTS CAN QUALIFY FOR R&D TAX CREDITS?

A broad range of projects can meet the Government’s R&D definition, for example:

1. Design and development to improve vehicle performance:

  • Aerodynamics
  • New materials
  • Lightweighting
  • Fuel efficiency
  • Battery technology/life
  • Space constraints
  • Improvements in structural performance or crash worthiness

2. Automation of manufacturing processes

3. Value engineering to reduce cost whilst maintaining performance

4. Process development to:

  • Increase reliability
  • Increase efficiencies
  • Reduced wastage
  • Increased throughput

5. Integration of new technologies from another industry

6. Investigative work identifying causes of manufacturing defects

7. Development of manufacturing techniques to construct complex components

8. Feasibility studies of concept vehicles and technologies

9. Manufacturing trials to resolve technical challenges with scaling up new products to full-scale production

10. Trials to improve process efficiencies, throughput or reduce waste/costs

WHY IS RESEARCH & DEVELOPMENT IMPORTANT FOR THE AUTOMOTIVE SECTOR? 

We speak to hundreds of businesses that think they don’t qualify for the relief, or potentially even worse know about the scheme but don’t realise the extent to which what they’re doing satisfies the breadth of the definition for tax purposes and hence are leaving valuable cash on the table, which makes the eureka moment sweeter.

If you can answer “yes” to both of the criteria mentioned above (are you changing anything? did you face some challenges in effecting those changes?), it’s time for us to have a chat, because R&D tax incentives are a fantastic way to keep your business and your cash flow on the front foot.

AND HERE’S WHAT OUR CLIENTS SAY

“Chris and the team helped us realise what we could do, and we went from there. We got a proper understanding of what we could actually claim for. The claim process was incredibly relevant to us. We’re a very innovative company so we quickly realised it could be very financially rewarding. Chris and the team quickly developed an understanding of what we did. He really understood what our business did and where the potential claim would be. It certainly helped to have someone with that level of knowledge. Knowledge of the process but the technical aspects too”.

Read All Reviews

Our Experts

CP Events

Reviews

PAUL, JAN 2024

“Excellent service for our first year audit.”

DAVID, JAN 2024

“R&D Claim: The results were better than expected. The additional cash will enable us to increase profitability”

ALAN, JAN 2024

“R&D Claim: The results were not as good as previous years. The additional cash will allow us to further invest in our R&D program.”

STUART, JAN 2024

“Great to have a personal relationship with the whole team. Always willing to help. Sometimes a little slow to respond on some issues (but then again so are we). Audit team are brilliant, bar audits far to long now owing to the amount of sample data we have to provide, which is hard when you have a small team and limited time.”

CLAIRE, JAN 2024

“Great team, and much improved communication and pro-active engagement over the past three months.”

MARK, DEC 2023

ROB, DEC 2023

“R&D Claim: Having worked with the R&D team at CP for a few years now, I had a good idea what to expect. As per usual they exceeded our expectations. The additional cash will allow us to invest in our fleet.”

RICHARD, DEC 2023

“Excellent service. Need to ensure pricing is competitive.”

DAVID, OCT 2023

“Good insights provided. Nice team to deal with. Need more consistency of team members and where this is not possible a better handover should be provided to new members. Need strong manager oversight on all audits, in particular where there are complex transactions etc. Improved communication between audit team and finance functions within the business.”

LUCIA, JUN 2023

“Final Packs are taking too long, communication”